Here is my situation:
Age 62, DW 61.
Nest Egg: $1.7 million….$1.3 million in 401Ks and 400K in CDs.
Home all paid.
Kids all done…out of house and college paid.
So:
I plug $1.7 million into my trusty HP12c financial calculator present value.
Plug in 35 for number of years…so run is until I am 97.
Put in 2.5 annual percentage rate of return…most here put in between 5 and 7% but also figure 3% inflation..so I take mid and subtract 3 and assume an average rate of return over next 35 years of 2.5%...conservative.
I also put $500,000 as a future value for an estate to leave the daughters.
Now, I press payment and I get $64,346.70 a year withdrawals.
DW and I can pull social security at 62 amounting to $42,000 and when added to above comes to $106,347 per year gross.
Now that is over $106K per year for the next 35 years well into our nineties! And all we have to do is average 2.5 percent per year for next 35 years.
So, should I continue to run for the train, or should I head to the beach?
Age 62, DW 61.
Nest Egg: $1.7 million….$1.3 million in 401Ks and 400K in CDs.
Home all paid.
Kids all done…out of house and college paid.
So:
I plug $1.7 million into my trusty HP12c financial calculator present value.
Plug in 35 for number of years…so run is until I am 97.
Put in 2.5 annual percentage rate of return…most here put in between 5 and 7% but also figure 3% inflation..so I take mid and subtract 3 and assume an average rate of return over next 35 years of 2.5%...conservative.
I also put $500,000 as a future value for an estate to leave the daughters.
Now, I press payment and I get $64,346.70 a year withdrawals.
DW and I can pull social security at 62 amounting to $42,000 and when added to above comes to $106,347 per year gross.
Now that is over $106K per year for the next 35 years well into our nineties! And all we have to do is average 2.5 percent per year for next 35 years.
So, should I continue to run for the train, or should I head to the beach?