Hi
I am soon approaching FI. Accumulating was simpel, I have put 100% in global ETFs. But figuring out how the portfolio should be in RE and how withdrawals work, I find less clear. For now, I am planning to use VPW withdrawals.
My situation is as follows:
- RE at 50, needing 30k at average to live properly, 35k more comfortable
- pension income will start at 68. This will suffice for yearly spending. So no extra income/withdrawals needed from this age onward.
So, I (only) need to bridge 18 years. And I expect an inheritance somewhere down the road.
So how do you know how much I can withdraw with VPW? I can lookup in the table at jump to age 50 and 90/10 portfolio. It states I can withdraw 4,5% from current portfolio value. But this table assumes I will be needing money from my 50 to 100 years, right? Is it correct to state I will be needing at most 18 years of withdrawals, so 100 - 18= 82. So I lookup in the table as if I am currently 82 years old, which yields a 7,6% withdrawal?
But even with this correction, it will not take an expected windfall (inheritance) into account. So probably I will need the excel for this. The sheets are a bit overwhelming though.
Is it correct that I only need to fill in the Retirement sheet? And that I do not fill in anywhere how much money I monthly/yearly need, but it will just calculate how much money I can withdraw and I should just judge if this is sufficient or not?
How do I simulate a windfall? For instance, if I expect at withfall of 120k at 60, should I enter at Temporary Retirement Income #1, start age 60, stop age 61, monthly payment 10k?
Although I should be FI now, I won't go RE probably for another few years. So I don't need a very detailed withdrawal plan for now. I just want to get an idea how much I can spend with VPW if I would decide to go RE now.
I am soon approaching FI. Accumulating was simpel, I have put 100% in global ETFs. But figuring out how the portfolio should be in RE and how withdrawals work, I find less clear. For now, I am planning to use VPW withdrawals.
My situation is as follows:
- RE at 50, needing 30k at average to live properly, 35k more comfortable
- pension income will start at 68. This will suffice for yearly spending. So no extra income/withdrawals needed from this age onward.
So, I (only) need to bridge 18 years. And I expect an inheritance somewhere down the road.
So how do you know how much I can withdraw with VPW? I can lookup in the table at jump to age 50 and 90/10 portfolio. It states I can withdraw 4,5% from current portfolio value. But this table assumes I will be needing money from my 50 to 100 years, right? Is it correct to state I will be needing at most 18 years of withdrawals, so 100 - 18= 82. So I lookup in the table as if I am currently 82 years old, which yields a 7,6% withdrawal?
But even with this correction, it will not take an expected windfall (inheritance) into account. So probably I will need the excel for this. The sheets are a bit overwhelming though.
Is it correct that I only need to fill in the Retirement sheet? And that I do not fill in anywhere how much money I monthly/yearly need, but it will just calculate how much money I can withdraw and I should just judge if this is sufficient or not?
How do I simulate a windfall? For instance, if I expect at withfall of 120k at 60, should I enter at Temporary Retirement Income #1, start age 60, stop age 61, monthly payment 10k?
Although I should be FI now, I won't go RE probably for another few years. So I don't need a very detailed withdrawal plan for now. I just want to get an idea how much I can spend with VPW if I would decide to go RE now.
Statistics: Posted by mrnice404 — Mon May 27, 2024 1:30 pm — Replies 1 — Views 251