Here's the link: http://firecalc.com/calc-research.ph...+++&mix8=+5+++
Moderator: how do I include the link correctly?
Here's my question/confusion: when I run the model, in the outer years, the amount withdrawn from the portfolio sometimes drops to zero or to 7k. Doesn't seem logical to me. i would have expected it to stay relatively the same after social kicks in at 62, or just grow by CPI amount. Why would it drop down and vary so much?
here's the basics:
couple retires in 2008.
Desire 70k in income.
Has 730,000 in assets with another 160k to be added when house sells this year.
We will then take out 160000 in 2011 to buy a house.
We're going to take 135000 out now to put in short-term money instruments to pay for first five years of retirement starting in 2008.
That leaves 595000 (plus house 160k for three years) to run through firecalc.
We'll have non-cola pensions of 20k starting in 2008 and we will have part-time income of 20k starting in 2008 until social security kicks in at 2015.
SS are approximately 35k in today's dollars.
We're using the 70% equities model.
In simple terms we are pre-retiring in 2008 with fixed pensions of 20k, work income of 20k and 30k from investments. that equals 70k. The first five years the investment income will come from money market/cds, etc. set aside for that purpose. After that this will come from investments in market and bonds (595k). Work income drops off when social security kicks in in 2015.
Thanks for any insight!