
Budgeting for retirement
Q. I'm looking to retire in a couple of years. How long would $600,000 last me if I withdrew $31,000 annually?
Q. I'm looking to retire in a couple of years. How long would $600,000 last me if I withdrew $31,000 annually? I want my purchasing power to remain constant, with no decrease in my standard of living.
Veterinary Economics Personal Finance Editor Fritz Wood, CPA, CFP, says that a reasonably diversified portfolio—60 percent stocks, 30 percent bonds, and 10 percent cash—has an 80 percent likelihood of annually dispersing an inflation-adjusted $31,000 for 25 years. In other words, if you're retiring at 65, that $600,000 has an 80 percent chance of lasting you until you're 90 years old.
Fritz Wood
Wood recommends accessing a retirement income calculator online such as the one at
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