Here is a friend's scenario.
They are 50/51 and planning for a 40 year retirement.
Current Portfolio - $2,700,000
Annual Projected Expenses - $100,000 including taxes.
Projected Combined Annual Social Security @ 70 - $36,000
Home Equity - $500,000
No Pension.
Putting all that into FireCalc says it's 99% with equity allocation between 50-70%. Only 1 cycle of 104 fails for a 40 year retirement.
They both want to retire. Do you tell them to go for it?
If I was them I'd go for it because I know I could manage on much less. But given their expenses, 27x seems not enough for a 40 year retirement. I wouldn't count on social security being secure.
Also, if they are a friend of yours, do you give them your asked for opinion or recommend they talk to Vanguard or some other professional? It's one thing giving anonymous advice on a forum. In this case I'd hate to ruin a friendship over a bad sequence of returns.
They are 50/51 and planning for a 40 year retirement.
Current Portfolio - $2,700,000
Annual Projected Expenses - $100,000 including taxes.
Projected Combined Annual Social Security @ 70 - $36,000
Home Equity - $500,000
No Pension.
Putting all that into FireCalc says it's 99% with equity allocation between 50-70%. Only 1 cycle of 104 fails for a 40 year retirement.
They both want to retire. Do you tell them to go for it?
If I was them I'd go for it because I know I could manage on much less. But given their expenses, 27x seems not enough for a 40 year retirement. I wouldn't count on social security being secure.
Also, if they are a friend of yours, do you give them your asked for opinion or recommend they talk to Vanguard or some other professional? It's one thing giving anonymous advice on a forum. In this case I'd hate to ruin a friendship over a bad sequence of returns.