Portfolio needed to retire: To support $130k annual expenses (ALL expenses including taxes, future roof replacement, etc.), for a 30 year retirement with a 4% withdrawal rate, you will need $130K * 25 = $3.25M
The 4% rule does not consider other income sources such as Social Security, annuities, or part time income. However, as you highlighted in your response, you may not need a 4% withdrawal rate from your portfolio to generate the income you require when no longer working due to those other income sources.Is this the right thought process?- 130k-DW SS 18k = 112k * 25 = 2.8M.
Also any thoughts on question 1. DW will start collecting Social Security at 62 this July 2024. DW will continue working part time while collecting Social Security and not exceeding earnings limit of $22,320. I believe no Social Security benefits will be withheld, am I missing anything?
What you proposed as far as reducing your expense needs by the social security income is a reasonable way to look at it.
Some people are more conservative and others less so when considering what they think they will need and able to feel good that it's very unlikely they will run out money.
The following link was also recently shared which I found relevant and informative for this topic.
https://portfoliocharts.com/2024/03/15/ ... rate-math/
Statistics: Posted by invest4 — Mon Apr 01, 2024 2:21 pm — Replies 5 — Views 529