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JD The Jazz Doctor


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Sparky? Help Me Understand Dis?
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Sparky,
I am runnin numbers and different scenarios through a retirement calculator.

Most of the scenarios say: Savings Last Until Age XX.

But assuming a 6% post retirement return, and an inflation rate of 3% a year, I come up with a scenario where it looks like I may never need to even touch the principle amount, but live ok on that 6% return each year.

Does this make sense, am I missing something here? Why it say my money run out? cry  

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"And like Web, I enjoy throwing JR under the bus.  Problem is, it's usually under the special bus that I ride every day". Ghostdancer 12-18-09
ghostdancer


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Because you blew it all on wine.  You forgot to factor that into the equation, but your calculator "knows" it from the drunken way you always enter the numbers every time you're thinking about your retirement. winkbiggrin

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JD The Jazz Doctor


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lol it makes me wonder Sandy.smile
I am looking for one of them OH DUHHHH!!!!! moments & its not coming. I'm wondering if the calculator is factoring in the lessoned purchasing power over time due to 3% inflation each year over time?confused

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"And like Web, I enjoy throwing JR under the bus.  Problem is, it's usually under the special bus that I ride every day". Ghostdancer 12-18-09
ghostdancer


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It could be something like that JD, but I'll leave that for Sparky to answer. 

*I couldn't resist messing with you a little bit today. smile*

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JD The Jazz Doctor


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its ok sandy, I'm past due.smile

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"And like Web, I enjoy throwing JR under the bus.  Problem is, it's usually under the special bus that I ride every day". Ghostdancer 12-18-09
WebGuy


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Maybe its just such an incredibly large principle that you're set for life.





-- Edited by WebGuy at 13:51, 2008-04-10

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JD The Jazz Doctor


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 well, the interest on the principle would be enough by itself to maintain at my current level. Which would be fine with me. Ideally again should I be able to attain that amount etc...

notice how sparky ducked out as soon as he got in trouble with AC?smile

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"And like Web, I enjoy throwing JR under the bus.  Problem is, it's usually under the special bus that I ride every day". Ghostdancer 12-18-09
JD The Jazz Doctor


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aw maybe I get it. THe principle is still earning money up until a certain age after retirement, after that, at the current withdrawal rate each year, its no longer earning money. maybe.confused

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"And like Web, I enjoy throwing JR under the bus.  Problem is, it's usually under the special bus that I ride every day". Ghostdancer 12-18-09
WebGuy


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I dunno?

Maybe we can tempt Spark to come back out from behind the couch with some tuna?



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MzHartz


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What age is it saying, and what type of account are you looking at? I'd have to double check, but I think you can only contribute to an IRA until you're 71 1/2.

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Sparky


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Just real quick JD, and I'm off to a meetin, rule of thumb (and there aren't that many) 4% is your magic number. Mathematically at 4% you will never run out of money. This doesn't even take into account an inflation rate. 70 1/2 max contribution age. smile.gif

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MzHartz


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Oops, I meant 70 1/2, I just got a little 1 happy.

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JD The Jazz Doctor


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I bet thats what they mean. thanks!smile

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"And like Web, I enjoy throwing JR under the bus.  Problem is, it's usually under the special bus that I ride every day". Ghostdancer 12-18-09
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