Quote:
Originally Posted by Spud
Do you mean this blog post? If so, that is a good one.
I've been playing around with Retirement Forecaster this evening. I put in our account types & values to the best of my ability. I said we wanted $90k/year retirement income. Assuming 7% overall returns and 3.5% inflation, if we do the following for the next 22 years we should be fine until age 95:
$15,500 to 401(k)
$10,000 to IRA
$15,000 to taxable accounts
Of course, I would hope for better than 7%, and we would theoretically be able to do a reverse mortgage on our home if we needed to do so, but I hope we do not. But at least this gives me a starting point to 'check in' with our goals and figure out if we're saving enough.
I wish the calculator in Quicken worked the way it should. It would be so ideal. :/ |
That blog post also had another thread created around the same day. That thread had more comments on it.
I think a 7% return is low for long term planning. Simple tax planning could add 1-2% to this anyway.
Meaning I could plan for a 9% investment return without any tax considerations.
If I only get 8%, I can probably lower my taxes without lowering my income with proper planning. I might even be able to lower that to 7%.
Because you are putting 15k into taxable accounts as part of your plan, you could leverage taxes more than someone which only had money in 401ks and IRAs (and pensions).