No. of Recommendations: 0 seems to me that I should be able to live comfortably on the 100k or so that I should be able to generate from that *without* having to touch the principal. I live on less than that now. Is this is a reasonable expectation or am I missing something?

Just to give you an idea of how inflation will impact that $100K, here are some numbers: I currently live on ~ $50K/year. At an inflation rate of 4.33% over the next 20 years, I will need to withdraw ~ $111K just to maintain my current standard of living. In 30 years I will have to withdraw $170K.

From 1992-2004 the annual inflation rate averaged 2.56%. But the annual inflation rate from 1960-2004 averaged 4.43%, due to several periods when the inflation rate was double digits.


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