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Subject:  Re: calcualte my retirement plans Date:  4/6/2012  6:19 PM
Author:  pauleckler Number:  70482 of 88074

Are you familiar with out 4% burn rate guideline. It tells you you can spend up to 4% of your investments per year on living expenses and have a reasonable chance of having your money last your lifetime. 4% of 240,000 is $9600, or $800/mo.

You are very close to the limit and probably below it. So the return you get on your IRA is critical (assuming you plan to spend the $1000 from your IRA).

You would be best off to find ways to reduce your expenses or increase your income. Working part time or hobbies such as selling stuff on ebay could make the difference.

I hope your $2600 expenses includes everything including income taxes and provisions to replace vehicles, home maintenance, health insurance, etc. If it does, living below your SS income looks great. Then your IRA is a reserve to cover the unexpected or buy some extras like travel, etc.
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