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....We probably need about $100K annually to live on,......Do we sound like we are on track?.....

In addition to looking how much is needed for a 4% safe withdrawal rate to support that much, you should also Google "immediate annuity quote" and plug some of your numbers using different ages into in one of the web sites that gives you instant quote. Buying an immediate annuity is basically like buying a pension.

With an immediate annuity you can get much more that 4% of your next egg because your estate will usually not get any money from the annuity if you die early. (inflation can be a big problem) Ask if you don't know why any other type of annuity is usably a poor to terrible choice.

Even if the numbers for an immediate annuity look good, there are still lots of questions about what options to get, if you should buy multiple annuities, and when you should buy it. It might be best to wait until you are in your late 70's instead of buying one the day you retire.

Even if an immediate annuity isn't right for you, seeing how much one would cost is still a good reality check to see if your assets are even in the same ballpark.

You should also try to calculate how much you will need at different ages, when you are in your mid 60's and active you might spend a lot but once you are in your mid seventies or so you will naturally slow down and may need relatively little money each year while your health remains OK. This is especially true if you will have a paid off house.

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