At a 4% withdrawal rate you’d have $80k per year to live on

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Jan 26, 2020
4:41:23pm

PCCoug Contributor

without touching the principle. Many consider a 4% withdrawal rate pretty safe to make sure you don’t run out of money.

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PCCoug

Bio page: PCCoug
Joined: Aug 25, 2010
Last login: Apr 28, 2024
Total posts: 946 (3 FO)

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Messages

Author

Time

I am 40, do I seriously need over 2 million saved up by retirement? Feels

viper

1/26/20 4:38pm

BM TNT.

777

1/26/20 4:39pm

He needs money please help

TNT

1/26/20 4:39pm

What happened to the $20,000 I sent him last week?

bluecougar1985

1/26/20 4:44pm

Inflation

TNT

1/26/20 4:45pm

RE: Inflation

bluecougar1985

1/26/20 4:47pm

Here on cougarboard the number I believe is around 5 mil,a lot of high rollers

franklyvulgar

1/26/20 4:40pm

You mean you don’t already have $2 million saved up?

CrimWalCoug

1/26/20 4:40pm

At a 4% withdrawal rate you’d have $80k per year to live on

PCCoug

1/26/20 4:41pm

Yep, literally just depends on what you want to live on.

BYUFootballisBack

1/26/20 5:14pm

I guess the tough thing is knowing what inflation will do, 80k might not be

viper

1/26/20 5:43pm

That’s supposed to be built into the 4% rule but you should be updating and

BYUFootballisBack

1/26/20 6:06pm

Oh, that 80k is in today's money, that is a lot

viper

1/26/20 8:50pm

Depends if you have a pension

idacoug

1/26/20 4:43pm

In thirty years, probably.

RC Vikings

1/26/20 4:43pm

I think 2 million is needed if nothing else is considered. I for one am counting

bluecougar1985

1/26/20 4:44pm

depends... is your house paid off and will you live in a place with high property/sales taxes?

HarlemCoug

1/26/20 4:45pm

4 mill

Mr. Belding

1/26/20 5:11pm

It all just depends on your lifestyle and expectations..

cougfanz

1/26/20 5:16pm

Good question. Answer is probably yes

Cougforgood

1/26/20 5:27pm

You need 4 million.

YSMACK

1/26/20 5:46pm

I’ve been working for 10 years, maxing my employer match and never putting less than 10% into a 401k. I contributed to

Mike Honcho

1/26/20 5:51pm

You should cash in the Pension if they allow it and roll that into your IRA or

VballDad

1/26/20 5:54pm

That’s what I plan to do, but there’s no lump sum payout until I either retire or resign

Mike Honcho

1/26/20 6:03pm

They don’t pay 10% tithing and got a jump 2 years earlier in the workforce

cougfanz

1/26/20 5:55pm

It’s So true!

Cougforgood

1/26/20 5:59pm

What targets are you basing this off of?

BYUFootballisBack

1/26/20 6:08pm

The ones that show your target as a function of your salary at various ages. For example:

Mike Honcho

1/26/20 7:10pm

Savings metrics that are based on income rather than expenses are kind of dumb..

BYUFootballisBack

1/26/20 7:21pm

You sound like you are well on track for a very comfortable above average

BYUFootballisBack

1/26/20 7:23pm

Also your salary should always be increasing so facing it off salary doesn't mak

Broda

1/27/20 10:20am

Sounds to me like you’re going fine... cause if you’re not I’m screwed...

Pretorian

1/26/20 6:35pm

I don’t know you NEED 2 million, but you can’t have too much

Lifi

1/26/20 6:03pm

This. I agree with this.

Idahofallsblue

1/26/20 6:52pm

No, you don’t. Unless that isn’t adjusting for inflation.

Junior Deputy

1/26/20 7:04pm

Very well said. This is how I project to see where I’m at

Cougforgood

1/26/20 8:28pm

I retired about 6 years ago with about a million and I feel like I have more

LiveY'r

1/26/20 7:10pm

Fantastic post, thanks for sharing.

Junior Deputy

1/26/20 7:14pm

Exactly this. It’s akin to a car salesman telling you that you need a different

BYUFootballisBack

1/26/20 7:27pm

FWIW, I also found that it was much easier to save over the last 10-15 years

LiveY'r

1/26/20 7:25pm

Thank you for sharing

Cougforgood

1/26/20 8:30pm

Obviously, waiting to start SS as long as you can is best for

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