Quote:
Originally Posted by Shazam
Let's do the math...
$105K @ 11% = $962.50 per month.
Future value @ 6% annum over 20 years...
~$444714
Let's drawn that down...
Take out $3750/month... RoR of 2% on the remaining principal.
You have 11 years before all the money is gone.
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I don’t agree with your assumptions... consider that a pension pool can be invested much more aggressively than an individual portfolio (ie why only 2% post retirement- even an individual should be more aggressive than that, let alone a pool)
It doesn’t take very aggressive assumptions to make their pension entirely user funded.