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Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: Re: Accuracy of certain Monte Carlo Calculator? Date: 8/26/2011 6:50 PM
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I would question the life expectancy as you mentioned earlier.

Well, the OP did mention they were leaving the work force early due to a disability. If that disability also means a shortened life expectancy, I have no problem with planning on something shorter than the national averages.

It would suck if you lived 10 years passed the calculated life expectancy. I would prefer that my money outlived me.

Agreed.

But wouldn't it also suck to spend the last few years of your life living a miserly existence just to keep money on hand that you'll never spend?

The perfect plan would have both you and your money run out at the same time. The next best plan would be to make sure you run out before your money does.

I suspect this is one case where you'd likely want to adjust your retirement plan as you go along. I'd probably start off with the assumption that the OP will live longer than expected. (I think we all agree that running out of money is the worst case scenario.) Start withdrawals on that basis - perhaps the traditional 30 years for the OP instead of their current 21.

After a couple of years, revisit the plan. How is the health doing? How are the investment doing? If the health is taking a turn for the worse, it may be OK to adjust the withdrawals to a shorter life expectancy.

--Peter
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