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strial asks,

The early retirement fairy came early for my wife and me. She is 50 and I am 51. Our combined total lumpsum payout will be approximately $1.3m. While it is a possibility that I will supplement our retirement with $30-$50K consulting income, this may not happen. The entire lumpsum will be placed in rollover IRA(s) with one being set up to provide monthly withdrawals. If I want to have monthly withdrawals of $8,500, what are some investment options to consider in order to minimize the funding for this particular account.

You may want to investigate how much you can safely withdraw from a retirement portfolio and still have the money last for 40 or 50 years while keeping up with inflation. Most of the research on the subject says you should limit your inflation-adjusted withdrawal to no more than 4% to 5% of assets. A 5% withdrawal from a $1.3 million portfolio is only $65,000 per year. A withdrawal of $8,500 month ($102,000 per year) unfortunately gives you a good chance of running out of money and eating "Little Friskies" before you reach age 80.

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