ShokWaveRider
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I noticed in a post someone types that they has 61% of their Retirement Nest Egg was in IRA/401k (Deferred) type investments/funds.
I was curious how one calculated where SS fit in?
Say a retired household has (single or joint):
$2m in IRA/401k/other Deferred vehicles
$2m in After Tax Investments (Cash)
$5k per month in total household SS income
What percentage does one calculate SS income to be? I feel one HAS to count SS and/or Pensions even though one may be inclined not to. SS Haircut and increases Speculation Notwithstanding.
If one has a Pension, does one calculate that the same as SS assuming it is Monthly or Annually?
Based on above one could say they have 50% of their Nest Egg in After Tax Cash (even if it is invested) and 50% in Deferred 401k/IRA etc. Funds.
My guess would be to take the SS (or Pension) income multiply it by life expectancy (Say 25 Years) Come up with a lump sum and factor it into the mix.
In the Above example, that would make the totals roughly: 36.25%, 36.25% and 27.5% respectively.
I was curious how one calculated where SS fit in?
Say a retired household has (single or joint):
$2m in IRA/401k/other Deferred vehicles
$2m in After Tax Investments (Cash)
$5k per month in total household SS income
What percentage does one calculate SS income to be? I feel one HAS to count SS and/or Pensions even though one may be inclined not to. SS Haircut and increases Speculation Notwithstanding.
If one has a Pension, does one calculate that the same as SS assuming it is Monthly or Annually?
Based on above one could say they have 50% of their Nest Egg in After Tax Cash (even if it is invested) and 50% in Deferred 401k/IRA etc. Funds.
My guess would be to take the SS (or Pension) income multiply it by life expectancy (Say 25 Years) Come up with a lump sum and factor it into the mix.
In the Above example, that would make the totals roughly: 36.25%, 36.25% and 27.5% respectively.