sunrisered wrote: ↑Tue Jun 21, 2022 1:50 pm
happysteward wrote: ↑Tue Jun 21, 2022 6:24 am
Looks like you have all the basic numbers accounted for, I.e. estimated….I am seeing a 4.5% withdrawal rate ** required not including social security as you are so young…that withdrawal rate is too high for my liking and based on your conservative nature I am guessing it is too high for you too…I wouldn’t do it yet (I.e. retire)…consider part time in another line for a while?
** $72,000/$1,600,000= 4.5%
thank you happysteward
The 4% "rule of thumb" is for 30-year retirements.
Since you'll get Social Security in a few years, the math above is incorrect.
Think more of it as two buckets... A bucket of money to get you to Social Security, and THEN a 30-year bucket (4% withdrawals) from SS on.
At $72,000 a year, think of it as $300,000 for the next 4 years to get you to 62.
At that point, you'll get $3000 a month in SS...
So you will only need to pull $36,000 a year from your investments after that...
$300,000 for the next 4 years leaves you with $1.3 million...
$36,000/$1,300,000 = 2.7% withdrawals.
You are in good shape to retire.
"The best tools available to us are shovels, not scalpels. Don't get carried away." - vanBogle59