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If you want you income to increase with inflation you can't spend the entire rate of return. So If you are using a 5% return you should really only spend 2%, if
by frankbreetz 3y ago
If you want you income to increase with inflation you can't spend the entire rate of return. So If you are using a 5% return you should really only spend 2%, if you go with the current inflation rate.
- cma 3y agoSure but that too is to die with a million inflation adjusted, not to draw down. Are you saying retirees should need to be able to live only on ongoing gains?
- frankbreetz 3y agoSeems like a better plan then deciding when I am going to die. What if I plan on living to my 80s, but make it to my 100s?
- cma 3y agoPlan on 100s or buy an annuity
- nradov 3y agoIf you have accurate records for several ancestors who died of natural causes then you can put a reasonable upper bound on your lifespan. Do you have anyone in the previous few generations who lived to near 100? Lifespans haven't increased much for people who make it to adulthood.