No. of Recommendations: 1
<<<The generally regarded safe withdraw rate is 4%. This would radically cut the income stream to $333 a month. Consider that this is conservative, as 4% is regarded as being the rate at which the principal will not be depleted. In other words, one can live to be 200 and never exhaust the principal at a 4% withdraw rate.>>>

This is dead on target. Most people wonder why so "conservative", the answer, you have be leave enough to grow to beat inflation over the longer term.

At 62, your mother could live another 25 years. That means that inflation will cause everything to double in that time frame. While her $750/month might sound comfortable now, $375 probably won't in a few years.

A few other tips/questions. What is her living expenses going to be? Is $750/month all of it or is that the extra above and beyond pensions, etc.

When first setting this withdrawl system up, have about 5 years living expenses in cash/cash equivalants. That will give you a cushion to rid out any downturn in the market. Think about this is if you'd have retired last year, your stocks crashed but the cash cushion will give you a resonable amount of time for them to rebound.

JLC
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