You should consider all of your assets (IRA; social security income; pension income) as a whole rather than as separate buckets of money for planning purposes.That "hefty draw" from the IRA makes me nervous. I've heard about the 4% rule but not sure if it applies here. Four percent of $1M would be about $3300/month and if we took the pension as an annuity and my wife collected Social Security immediately that would get us to $4900/month but our basic expenses are estimated at $6500/month. I'll try out the calculators others have linked to and get a better overview of a safe withdrawal strategy.
I don't like the 4% rule as a planning tool. However, if you are going to use this metric, then you should include the present value of your social security benefits in this equation. Opensocialsecurity will output this value when using this tool.
Statistics: Posted by dogagility — Thu Nov 14, 2024 5:33 am — Replies 11 — Views 1731