Withdrawal calculator

[mxracer317]

I've been pulling around 4% out of mine for 7-8 years now as well as two lumps sum withdrawals ($50k & $100K) and due to market performance we have considerably more than what we started with. Just about to turn 67, might bump up to 6% or so in the not too distant future.

The big "what ifs" are the inflation rate and market performance. Since nobody has a crystal ball past history is all we have to go on.

The fact that you are even thinking about this puts you miles ahead of the average American. You're probably going to be okay.

Check out “sequence of return risk”

 

[antelopedundee]

If you retired today you could invest the entire amount in a 30 yr Treasury that would pay you a 5% coupon and at the end of the 30yrs you get the principal back. Again, the problem is that $30k today will not equal $30k in 20-30yrs and at the end of the term the principal certainly won't have the same spending power.

If you need more than the $30K what to do? Wiithdraw from the principal? Also can we assume the OP is getting something from Social Security? Adding $25K from SS gets you $55K. Not a great amount if you have medical issues. So far my copays have not been THAT hard o my bank account.

 

[antelopedundee]

Just make sure you have a plan for health insurance pre Medicare.
My spouse is still young enough and on private health insurance, costs approx. $1300 per month.

Yikes. And that's likely for a policy with maybe $5K OOP along with the high premiums.

 

[sigpros]

I will have retiree health care through my retirement, so that will help.

I am just trying to be proactive I want to be comfortable but I also wouldn't mind living and doing some thing while hopefully I can. I would like to do a lot of fishing with my wife and still do a couple hunting trips and hopefully spoil some grandkids one day.

The SS thing is a whole other can of worms. I don't have to start drawing at 62 but my pension changes if I do or not. And my wife is also 2 years older than me so I need to figure out how we should do all that. Her delay? She draw at 62 and I wait? lots to figure out for sure still.

 

[Robg2]

I will have retiree health care through my retirement, so that will help.

I am just trying to be proactive I want to be comfortable but I also wouldn't mind living and doing some thing while hopefully I can. I would like to do a lot of fishing with my wife and still do a couple hunting trips and hopefully spoil some grandkids one day.

The SS thing is a whole other can of worms. I don't have to start drawing at 62 but my pension changes if I do or not. And my wife is also 2 years older than me so I need to figure out how we should do all that. Her delay? She draw at 62 and I wait? lots to figure out for sure still.

A great tool for determining the optimal withdrawal strategy.

Open Social Security: Free, Open-Source Social Security Calculator

opensocialsecurity.com

 

[SAJ-99]

If you need more than the $30K what to do? Wiithdraw from the principal? Also can we assume the OP is getting something from Social Security? Adding $25K from SS gets you $55K. Not a great amount if you have medical issues. So far my copays have not been THAT hard o my bank account.

Yes and No. You can sell principal but that will decrease the next interest payment. The 30yr treasury example was just a baseline, and part of my "never invest in a fixed annuity" sales pitch. It is pretty easy to see the problems inflation and time create. This is why I suggest people build the quick and simple model and play with the numbers. It helps them create a budget for 5yr, 10yr, 15yr, etc and think about the future. One thing is for sure, the future will be different than today. Retirement advice has changed greatly over the last 40yrs.

lots to figure out for sure still.

There is a site called Maxi Fi that I have used that is pretty cheap. I thought it was decent but I will want to do it when I am closer to the decision date. You only have to do it once but it does take some time to load in the files from SS and such. If you use a FA, just make sure you use one with a fixed fee.

 

[Robg2]

Yes and No. You can sell principal but that will decrease the next interest payment. The 30yr treasury example was just a baseline, and part of my "never invest in a fixed annuity" sales pitch. It is pretty easy to see the problems inflation and time create. This is why I suggest people build the quick and simple model and play with the numbers. It helps them create a budget for 5yr, 10yr, 15yr, etc and think about the future. One thing is for sure, the future will be different than today. Retirement advice has changed greatly over the last 40yrs.

What about TIPS?