I’d like to retire soon but still feeling very insecure. Here are my current numbers:
- 55y/o with one more year before fire’ing
- 600K in 401K and IRA/rollover IRA
- 1.750M in brokerage/bank accounts - 30% stocks, 30%, 40%(!) in cash
- 35K/year (estimated) social security at age 70
- estimated inflation-adjusted 60K/year expenses during retirement
If my math is correct, assuming I’ll be around until 95y/o, then my WR is 2.53% before 70y/o, and 1.05% once I start collecting ss, to an average 1.58% WR. This sounds fairly safe. Yet, knowing myself, I’m afraid once I retire, I’ll not only be constantly worrying, but also reluctant to freely spend the budgeted 60K if I don’t have income - similar to a regular paycheck - hitting my bank account periodically.
Any suggestions how I could create my own 60K/year ‘paycheck’ from my assets, especially during the pre-social security years? How do you generate income to cover expenses from assets?
- 55y/o with one more year before fire’ing
- 600K in 401K and IRA/rollover IRA
- 1.750M in brokerage/bank accounts - 30% stocks, 30%, 40%(!) in cash
- 35K/year (estimated) social security at age 70
- estimated inflation-adjusted 60K/year expenses during retirement
If my math is correct, assuming I’ll be around until 95y/o, then my WR is 2.53% before 70y/o, and 1.05% once I start collecting ss, to an average 1.58% WR. This sounds fairly safe. Yet, knowing myself, I’m afraid once I retire, I’ll not only be constantly worrying, but also reluctant to freely spend the budgeted 60K if I don’t have income - similar to a regular paycheck - hitting my bank account periodically.
Any suggestions how I could create my own 60K/year ‘paycheck’ from my assets, especially during the pre-social security years? How do you generate income to cover expenses from assets?