I was watching a video on nest eggs on how much income you would have in retirement if you had 4 million dollars and did a 5%, 4%, 3%, and 2% with draw. The 2% withdraw was something like 80k a year.
This got me thinking. If you did a 2% withdraw of you $4 million and you started at the normal retirement of 65 and lived until 95. You of of spend $2.4 million of that $4 million. Let just say you stick with a 60/40 split 60% stock and 40% bond with an avg 6% return. When you die you could have ... drum roll $13.8 million. 👀
OK now your dead and lets say your spouse was so broken hearted they died the same time. So you are 95 and lets say you had kids when you were 30. So now your kids are 65 and about to retire and your grand kids are 35. You leave your inheritance to your two kids. They both get $6.9Million. That goes on top of whatever retirement they have saved which very well could be there own $4 million. Now I know 4 million is a lot of money for retirement and most will be happy if they get to a million, but it goes to show you that there is something to say for having to much. In the scenario above one of two things should of happened either they should of retired earlier or took out a higher % in retirement. For many that is easier said then done.
It is sometime are to retire or spend more then you have ever done. You could be saving to donate to a cause you care about. Everyone is different, but don't forget to enjoy the simple things before your time is up. Get out; see thing and do things before you can.
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