is my assumption correct? (for my distribution plan)

albundyz · 03-08-2007, 03:41 PM

In the future, I plan to post my proposed retirement distribution plan and ask for advice, but before I do that, I want to make sure that my assumptions are correct.

Often, people will offer their views on their proposed plans and people reply by saying “you forgot to consider the effects of inflation”.

I’m trying to avoid that.

If I plan to take 60K my first year, and 61,800 (60 + 3%) my second year, and 63,354 (61,800 + 3%) my third year…..and so on

(I know that inflation might be more than 3%, but I don’t want to debate that )

By doing this, can I assume that no one should respond by saying that I forgot about inflation?

TromboneAl · 03-08-2007, 06:27 PM

You forgot about inflation!

[Edited to add smiley]

MasterBlaster · 03-08-2007, 06:35 PM

Albundyz:

If you believe that your personal inflation rate can be modeled by an index like the CPI, then your assumptions are correct for your withdrawal scheme.

TromboneAl:

Be nice now !

03-08-2007, 03:41 PM	#1
albundyz Recycles dryer sheets Join Date: Feb 2006 Posts: 59	is my assumption correct? (for my distribution plan) In the future, I plan to post my proposed retirement distribution plan and ask for advice, but before I do that, I want to make sure that my assumptions are correct. Often, people will offer their views on their proposed plans and people reply by saying “you forgot to consider the effects of inflation”. I’m trying to avoid that. If I plan to take 60K my first year, and 61,800 (60 + 3%) my second year, and 63,354 (61,800 + 3%) my third year…..and so on (I know that inflation might be more than 3%, but I don’t want to debate that ) By doing this, can I assume that no one should respond by saying that I forgot about inflation? __________________ These walls are kind of funny. First you hate 'em, then you get used to 'em. Enough time passes, gets so you depend on them. That's institutionalized. They send you here for life, that's exactly what they take. The part that counts, anyways." --- Red from 'Shawshank Redemption'

03-08-2007, 06:27 PM	#2
TromboneAl Thinks s/he gets paid by the post Join Date: Jun 2006 Posts: 3,637	Re: is my assumption correct? (for my distribution plan) You forgot about inflation! [Edited to add smiley] __________________ - Al -- Always serious, never joking. No, wait. Never serious... Always... I forget.

03-08-2007, 06:35 PM	#3
MasterBlaster Thinks s/he gets paid by the post Join Date: Jun 2005 Posts: 1,673	Re: is my assumption correct? (for my distribution plan) Albundyz: If you believe that your personal inflation rate can be modeled by an index like the CPI, then your assumptions are correct for your withdrawal scheme. TromboneAl: Be nice now !

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