pb4uski
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
At $75k in expenses your WR is about 3.8%.... carving out 10 years of the gap between $75k and $32k of SS is $430k....leaving $1,125k... and your gap of $43k in relation to $1,125k is 3.8%.
At $70k the WR is 3.2%.... so I think you are fine.
You can make your situation better by spending some of your new found time scrbbing your expenses and seeing if you can dial them down without sacrificing too much... $70-75k seems a bit high for one.... but perhaps you are in a HCOL area.
I thought she said her total ER assets were $1.55M?
She did say they were $1.55 million, but the amounts above are after carving out from the total an amount for 10 years for SS that she won't receive from 57 to 67. And actually, as I write this I realize I made a mistake and her situation is even better than I thought.
She has $1,550k and carves out $320k as a replacement for $32k a year of SS that she will not have from 57 to 67, leaving her with $1,230k. If her expenses are $75k a year then her gap that needs to be funded is $43k a year ($75k - $32k). The $43k a year in relation to the $1,230k is a 3.5% WR, which is very reasonable for a 57 yo IMO.
So from 57 to 67, she'll withdraw $43k a year plus inflation from the $1,230k and $32k a year from the $320k for a total of $75k a year. Once she turns 68, the $320k will be gone but will be replaced by $32k a year of COLA adjusted SS.
My mistake was carving out the gap * 10 years rather than the SS amount * 10 years.
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