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Subject:  Re: calcualte my retirement plans Date:  4/6/2012  7:06 PM
Author:  aj485 Number:  70483 of 88431

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.

Not exactly. The 4% 'safe' withdrawal rate is based on a 30 year payout, not a lifetime payout. For someone who is 65, and plans to live until 95, or less, the 4% rate would cover a lifetime plan.

The OP didn't say how old they were, but they could be as young as 62 and still draw SS retirement benefits. In that case, if he or his wife have relatives who have lived into their late 90s, a 35 or 40 year plan might be a better plan for them. In that case, the withdrawal rate would need to be lower.

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