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I said an annuity. An annuity would draw the principal down as well, and you generally make a drawdown assumption that leaves you with some safe margin for exte
by fnordpiglet 4y ago
I said an annuity. An annuity would draw the principal down as well, and you generally make a drawdown assumption that leaves you with some safe margin for extended life and maybe some inheritance.
- treewalking 4y agoIf you model it as a lifetime annuity with inflation adjustment you are looking at more like 50k/year income at the outset were you to buy today. My understanding is that annuities provide in general a worse return than the so called 4% rule on average.