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Fish7x,

To add a bit to my previous post:

- If you think you will apply for medical coverage through the ACA, research the income limitations. Your income is not your 1040 AGI - it has to include tax free income. And, if you go over the limit (by even one dollar), you lose the entire premium tax credit.

- As for why knowing what you will spend is so important, assume you have $1MM that you want to last 35 yrs (53 to 88). If your spending is $40,000/yr and your investment return is 4% and inflation is 2.5%, you can withdraw 4% and almost make it to 88. But, if you spend $80,000/yr, you will run out at 68 (without factoring in social security).

- Other forms of income (social security, pensions, etc.) will impact your retirement spending and withdrawal rate, so research their impact carefully. These decisions require some thought about how long you think you/your spouse will live - the big unknown for all of us.

Good Luck.
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