Trick question poll......

[almost there]

It's not how much you make, it's how much you spend.

Agree, poor wording on my part.

Is this better?

How much would a couple need to retire at 55 with an income requirement of 60k per year?

Or am I missing the point?

 

[pb4uski]

Agree with others that more info is needed, but I did a quick and dirty calculation as purely a math exercice assuming 60k annual cash need inflated at 2.5% per annum, a 4.5% annual return on your nestegg and 10% tax rate on income from the nest egg and came up with 1.335m, rounded up to 1.4m.

Withdrawal rate is initially 4.3% but drops to 3.6% at age 62 when SS kicks in and lowers the annual withdrawals. Also assumes that SS COLA is same as inflation rate.

Funds run out at age 98. Also, it assumed that there were no taxes on any withdrawals (ie; taxable accounts) but the 10% provision for income taxes on nestegg income might be on the high side.

And like others have indicated, more is better.

 

[Gone4Good]

Real bond yields of 1.48%, Real equity returns (Gordon Equation) of 3.06%, with a 50/50 asset allocation, and principal consumption over 55 years (assumed portfolio exhaustion at age 110) gives you a withdrawal rate of 4.098%, which translates into a portfolio of $1,464,064.89.

Good luck.

 

[MasterBlaster]

How much would a couple need to retire at 55 with annual income of 60k? Assuming a 4-5% post retirement rate....with... 2-3% inflation.
No debt, 85% med coverage till 65, $1800 SS at 62

Used many calculators, read books, talked with several financial planners and have as many opinions.......
Just curious what this group comes up with as I have much respect for the posters here (where I am more of a lurker)

I'll take a crack at it...

To prefund your SS payment until 62 you would need something a little less than $1800 X 7 years X 12 months/year ==> ~ $151k

Since SS pays you $21.6k/year ($1800 X 12) you only need an income of $38.6k/year from your nestegg.

Using the 25X rule (ie 4% SWR) I get a nestegg of $965k

I'll then allow ~$40k for medical prior to Medicare at 65

4% SWR -grand total then is $151k + $965k + $40k = $1.15M

Alternately, Using the 20X rule (ie 5% [unsafe]WR) I get a nestegg of $772k

5% WR -grand total then is $151k + $772k + $40k = $963k

- Now wasn't that easy and it's probably just as good as any other calculator you have used.

 

[HFWR]

No option for " a sh*tload"...

 

[almost there]

I get the feeling many that voted get a lifetime pension and never bothered to figure this stuff out........ Or think they are going to live to 110.

 

[W2R]

I get the feeling many that voted get a lifetime pension and never bothered to figure this stuff out........ Or think they are going to live to 110.

Or, perhaps they are perfectly competent individuals that happen to disagree with you....

 

[almost there]

Perhaps.......

But those that posted more than 1.5 didn't provide much of a mathematical reason behind it.

Those under seemed to post why, and spelled it out more often.

But as I mentioned, it seems there is no right answer.

That's why its the "trick question".

Would it help if I added no house payment?
Thought no debt and 60k per yr would be enough.