So, in 25 years you'll have saved about $2,702,947.50. You think you can earn 5% per year in retirement and assume inflation will average 3.5% per year. You decide to increase your annual withdrawal by 3.5%, and want the money to last for 35 years with nothing left for heirs after that time. You are also contributing to a 401(k) and after using my 401(k) Calculator found it will be worth about $120,000 by the time you retire at 65. You also have $500,000 in IRAs (between the two of you) and will continue to contribute $8,000 ($4,000 each spouse) each year until you retire at 65. You're earning 5% per year on your taxable and IRA money and expect that to continue.Īfter using my Savings Calculator, you found that you will have $2,582,947.50 (between your taxable account and IRAs) in 25 years. But youll also need a withdrawal strategy. ![]() An aggressive savings strategy is a good start. You and your spouse currently have $150,000 in a taxable account to which you're no longer contributing. Make sure you can live comfortably in your retirement years. ![]() You're 40 years old and would like to retire at 65 (in 25 years). Your spouse will retire with you. ![]() You will be able to withdraw the equivalent of $25,448.65 (in today's $) at the beginning of each year. That seems pretty good. You also remembered you'll be getting Social Security benefits, so all is well! (Assuming all the above assumptions are met, of course.) Online retirement calculators are good for determining how much you need to save to provide sustainable income for your lifetime, and the T.
0 Comments
Leave a Reply. |