Welcome to the forum.
If you're in good health, you should delay claiming social security until age 70 to maximize a stable, inflation adjusted pension. Your yearly benefit will increase 8% for every year you delay claiming. Based upon 25K/year at age 67, this would be about 31.5K/year if you wait until age 70.
I suggest you use a variable withdrawal method to ensure you have sufficient funds throughout your retirement rather than some fixed withdrawal strategy like the "4% rule".
I've put your financial situation into the TPAWPlanner retirement withdrawal tool. https://tpawplanner.com/ 1.4MM portfolio; claiming SS at age 70; 70:30 asset allocation; living to age 95.
The tool generated a monthly spending amount of 7K now. If the market performed extremely poorly (5th percentile in a Monte Carlo analysis), your monthly spending would be reduced to 4K by age 85.
You can play with different asset allocations (and other variables) in the TPAWplanner tool to see how these effect your projected monthly spending amount.
A simpler tool based upon a similar variable withdrawal strategy is the VPW Retirement Worksheet. viewtopic.php?t=120430
All of the points above tie into your question about prospects, so I've group these all here.
Budget/Expenses
- $50K/year until age 70, then $75K/year (senior living or additional help some day?)
- I actually spend <$40K now, but prefer to plan for $50K and come in under budget
Approximate size of total portfolio: $1.3 million without counting emergency funds ($1.4 million with everything)
Social Security
FRA 67 = $25K/year
2. If I keep that much cash, maybe I should bump AA to 75/25 or even 80/20. I sleep well at 60/30/10, but 35 years is a long time. I know it's a personal thing, but ... thoughts?
3. How do my prospects look? I've checked Empower, Fidelity eMoney, FireCalc, etc. to age 95, and they look okay, but certainly not a slam dunk.
If you're in good health, you should delay claiming social security until age 70 to maximize a stable, inflation adjusted pension. Your yearly benefit will increase 8% for every year you delay claiming. Based upon 25K/year at age 67, this would be about 31.5K/year if you wait until age 70.
I suggest you use a variable withdrawal method to ensure you have sufficient funds throughout your retirement rather than some fixed withdrawal strategy like the "4% rule".
I've put your financial situation into the TPAWPlanner retirement withdrawal tool. https://tpawplanner.com/ 1.4MM portfolio; claiming SS at age 70; 70:30 asset allocation; living to age 95.
The tool generated a monthly spending amount of 7K now. If the market performed extremely poorly (5th percentile in a Monte Carlo analysis), your monthly spending would be reduced to 4K by age 85.
You can play with different asset allocations (and other variables) in the TPAWplanner tool to see how these effect your projected monthly spending amount.
A simpler tool based upon a similar variable withdrawal strategy is the VPW Retirement Worksheet. viewtopic.php?t=120430
I suggest thinking of your portfolio as a single entity for planning purposes. Buckets are mental accounting that don't serve a purpose in reality. It's your overall asset allocation that matters.Emergency funds (I think of this as a cash bucket more than an emergency fund)
Statistics: Posted by dogagility — Sat Nov 16, 2024 6:08 am — Replies 5 — Views 599