would someone please help me with the math on this?

[FLA]

since my neuro incident, I've had trouble with math, even plugging the right numbers into a retirement calculator. It looks like I am going to need to come up with 40k+ for DD's college and I'm going to have to use my IRAS (I can do this because I am disabled, there's no penalty).

If I have $450k left, how much could I take out each year for 40 years without going broke? The Vanguard guy said to plan on living to 100, I am planning on 86. He wasn't helpful and he gave me a number of 19k a yr but I don't know what it's based on and if I call back, because I'm just shy of 500k right now, I'd have to pay 0.3% to have active portfolio management.

Can anyone here please plug this into a calculator and get my answer? And then maybe show me what numbers you plugged into the calculator? TIA very much.

[tripods68]

since my neuro incident, I've had trouble with math, even plugging the right numbers into a retirement calculator. It looks like I am going to need to come up with 40k+ for DD's college and I'm going to have to use my IRAS (I can do this because I am disabled, there's no penalty).

If I have $450k left, how much could I take out each year for 40 years without going broke? The Vanguard guy said to plan on living to 100, I am planning on 86. He wasn't helpful and he gave me a number of 19k a yr but I don't know what it's based on and if I call back, because I'm just shy of 500k right now, I'd have to pay 0.3% to have active portfolio management.

Can anyone here please plug this into a calculator and get my answer? And then maybe show me what numbers you plugged into the calculator? TIA very much.

Doing simple math in my head.

Assuming you just live on principal without investment return.

450K divide 40 years=$11,250 per year (excluding fees .3%).

Can you live on that amount + disability check?

I also would consider NOT to pay for your DD college cost if you don't ever go back in the work place. It's not hard to fathom that you need the money more than she does, I would think. She can still apply for college scholarship or get a loan, work for it during summer break year-around.

[FLA]

Doing simple math in my head.

Assuming you just live on principal without investment return.

450K divide 40 years=$11,250 per year (excluding fees .3%).

Can you live on that amount + disability check?

I also would consider NOT to pay for your DD college cost if you don't ever go back in the work place. It's not hard to fathom that you need the money more than she does, I would think. She can still apply for college scholarship or get a loan, work for it during summer break year-around.

Shouldn't I be trying to live on the return and not the principal? But yes, I could live on that amt with disability if I lived frugally and when old enough went into those income based senior apts.

I'm obligated by my divorce decree to pay half the equivalent of a State school. However, my lawyer will argue that I can no longer do this. She did state the judge would ask why I hadn't been saving all along (I was putting the money in retirement) because if I had, I should have the money to send her (I was working full time until DD was 15).

[DaveInPgh]

Here are a few calculators you can try

https://financialengines.com/education-center/topics/calculators/how-long-will-my-money-last-in-retirement/

http://preparewithpru.com/shared/content/how-long-will-retirement-savings-last-calculator.php

https://www.regions.com/Insights/Personal/Retirement-Calculators/how-long-will-my-retirement-savings-last

[tripods68]

Shouldn't I be trying to live on the return and not the principal? But yes, I could live on that amt with disability if I lived frugally and when old enough went into those income based senior apts.

Can you risk your principal investment during market down cycle?

IF NOT,

I would highly consider putting it all in bond funds to generate monthly income. But if the interest start going back up, you might lose principal value. Also consider Muni bonds that pays 4-5% Yields that can generate 10K a year of income.

Lastly, this is the last thing you should consider, if above don't work out. Index Annuity- Yes you heard the negative stuff. I don't like this. But it will pay monthly income for next the 30 years (fixed) depending your long term horizon. I do not recommend this to anyone except in your case. But do some research first before taking some action.

[FLA]

I did this one:

portfolio balance at retirement: 450,000

asset allocation: moderate (50% bonds/50%stocks)

time spent in retirement: 40 yrs

initial withdrawal rate: 3.2%

total monthly withdrawal: $1200


this tells me what I could start to draw right now and I guess means I will have enough to last 40 yrs. I'm not sure this is the right calculator for my needs.

[tripods68]

I did this one:

portfolio balance at retirement: 450,000

asset allocation: moderate (50% bonds/50%stocks)

time spent in retirement: 40 yrs

initial withdrawal rate: 3.2%

total monthly withdrawal: $1200


this tells me what I could start to draw right now and I guess means I will have enough to last 40 yrs. I'm not sure this is the right calculator for my needs.

What fund are you using this?

[Petunia 100]

I plan to use the standard 4% withdrawal rate myself. That means you could withdraw 18k per year the first year. (450k x .04 = 18k). You give yourself a 3% cost of living raise per year, so $18,540 the second year, $19,096 the third year, etc.

The 4% withdrawal rate assumes you keep at least half of your money in stocks.

If you lose money in the early years, the chance of running out of money is real. One way to improve your odds if down markets occur early on is to take a bit less if possible.

[scfr]

The 4% rule is based on a 30 year retirement, so do not think it would be a prudent fit for a 46 year old.

This is such a high-stakes question that even though I have an opinion I am reluctant to answer and feel this is a situation when it would be best to consult a reputable professional who may be able to offer some guidance based on a thorough understanding of your situation.

[FLA]

The 4% rule is based on a 30 year retirement, so do not think it would be a prudent fit for a 46 year old.

This is such a high-stakes question that even though I have an opinion I am reluctant to answer and feel this is a situation when it would be best to consult a reputable professional who may be able to offer some guidance based on a thorough understanding of your situation.

thank you, I kind of thought that. I think I'll either wait til I hit 500k again and can get a free CFP session at Vanguard or think seriously about allowing them to actively manage my accts for 0.3%. I never thought I wouldn't be able to do it myself but this feels risky.

[FLA]

What fund are you using this?

Vanguard's calculator

[Petunia 100]

The 4% rule is based on a 30 year retirement, so do not think it would be a prudent fit for a 46 year old.

Right, but if the portfolio performs well in the early years, 30 years later the portfolio is larger than when you started, 2/3 of the time. So it would work just fine for a longer timeframe.

The problem is when those early years have poor returns. In those cases, the portfolio may not last 30 years, much less beyond.

[feh]

The 4% rule is based on a 30 year retirement, so do not think it would be a prudent fit for a 46 year old.

This is such a high-stakes question that even though I have an opinion I am reluctant to answer and feel this is a situation when it would be best to consult a reputable professional who may be able to offer some guidance based on a thorough understanding of your situation.

+1

However, given how tight things may be for you, the .3% management fee could be too expensive.

Do you have a friend that could walk through firecalc w/ you? This calculation needs to take more into account than the current balance of your IRAs.

And, depending on how conservative you feel you need to be, an SPIA may be a good option for you.

[FLA]

+1

However, given how tight things may be for you, the .3% management fee could be too expensive.

Do you have a friend that could walk through firecalc w/ you? This calculation needs to take more into account than the current balance of your IRAs.

And, depending on how conservative you feel you need to be, an SPIA may be a good option for you.

what is firecalc and SPIA?

0.3% would be $1400 a year, money I certainly could use but if it meant good active management, it might be worth it. However, my portfolio should hit 500k again soon (before I have to take the money out for college) and then I would get a session free with a Vanguard CFP. My experience in the past is that these sessions are very helpful.

[feh]

what is firecalc and SPIA?

0.3% would be $1400 a year, money I certainly could use but if it meant good active management, it might be worth it. However, my portfolio should hit 500k again soon (before I have to take the money out for college) and then I would get a session free with a Vanguard CFP. My experience in the past is that these sessions are very helpful.

firecalc: firecalc.com
SPIA: Single Premium Immediate Annuity