All this discussion about 'how much you need to retire' has got me thinking to ask, "Are you planning on leaving anything behind after you pass away?"
I know some people's figures for retirement nest eggs assume draw down of the principle balance, others (myself included) assume that the portfolio can be maintained in perpetuity without drawing on the principle.
My $2.5M at 55yr (for a couple) assumes a withdrawal rate of 4% (dividends mostly - which I expect to increase at the rate of inflation) and this nest egg will be passed on.
Obviously those withdrawing the principle should be able to retire sooner.
What are you going to do?
I know some people's figures for retirement nest eggs assume draw down of the principle balance, others (myself included) assume that the portfolio can be maintained in perpetuity without drawing on the principle.
My $2.5M at 55yr (for a couple) assumes a withdrawal rate of 4% (dividends mostly - which I expect to increase at the rate of inflation) and this nest egg will be passed on.
Obviously those withdrawing the principle should be able to retire sooner.
What are you going to do?