Quote:
Originally Posted by Enoch Root
the problem however, is that you don't know how long you are going to live. Once the principal starts to erode, it continues to turn downward and erodes more quickly. If you run out of money, you're screwed. So you need to be able to live off of the income alone, in order to be secure.
As for needing less when older, yes, people tend to spend less as they get into their 80s and beyond. However, there is such a hing as inflation, and $200k, 30 years from now, will not be all that much money.
Also, health costs can increase dramatically.
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Based on the change in the last 30 years, 200k would be equivalent to about 120k, which, yes and again, is a lot of money.