Quote:
Originally Posted by bizaro86
Ok, I know you said not to talk about tax rates or returns, but the person in your example needs $32k after tax per year for 30 years, or a total lifetime spend of $960k. I really don't think that person needs $1.5 MM, unless one of the unstated goals is to leave an estate of over $1MM.
For them to be out of money at age 95, you need to assume 33% taxes (which is greater than the marginal rate for that income level) and zero percent returns. I agree with those assumptions nobody is over saving.
A real return of 3% is reasonable. If the same retiree took 3% of their 1.5MM, that would be $45k pretax, or right around 32k aftertax. Leaving a $1.5MM estate. Imo being able to leave a 7 figure estate isn't a requirement to retire.
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This is key to me. My plan is not to leave much of an inheritance. Enough money to get me to 90 without touching the house. Then use the house for end of life care or beyond.