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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]If I am reading this correctly, then you have 11.7M investments + 4.1M that is being paid out 500K/year for 9 years.

Are you going to spend 500K/year? I'm guessing a portion of that will be reinvested.

The way I look at it is how much can I afford to lose. I am conservative, and I assume if we have a crash in retirement we need to be able to withstand a 50% loss in equities and a protracted flat period. So, I half our equities combine with bonds and from there determine what combination gives us about 3% return to live on.[/quote]

We will spend a good portion of that after taxes, yes.[/quote]

Well, 4% of 11.7M is 468K. You are covered for 9 years, not having to spend down from the 11.7M. And even if that drops to 8M in a crash, you'd have close to the 9 years to recover without having to touch the amount. Plus, I assume you'll be getting SSI. Also, the 4% is based on normal retirement years. You'll be tapping into the 11.7 much later. If you're close to RMDs only you can guesstimate how long you'll both live.

Have you run any of the online calculators? Firecalc, cFireism. There are others. I spent a good amount of time running those with all sorts of different input which helped me feel comfortable with what we needed and what we could spend. We were managed, but they drove me crazy. We have since gone to self managed.

Also, if you need the 500K/year now, will that go up or down in the future, taking into consideration potential LTC.[/quote]

We haven't run calculators ourselves, but our planner has done an extensive cash flow analysis and there would be a significant amount left at the end of life for our children, and he used very conservative growth and inflation factors (3.84% inflation, and 5% growth). In terms of LTC, the analysis did not include that, however, within that analysis it showed that we would need to spend about $500K a year (after taxes) starting now to exhaust the portfolio by the end of life. Right now we are spending about $325K after taxes, and with that spending level, we would have $27M in our portfolio at the end of life. The Monte Carlo analysis showed a pretty high level of confidence.

[img]https://i.imgur.com/1S1SIBT.png[/img]
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