How much money will I receive monthly from my Annuity Plan and 401K?

Question

Hypothetically speaking, say I have $300,000 in my 401K and $200,000 in my Annuity Plan. How do I determine how much money I will receive monthly once I retire? I'm 65 years old.

Answer 1

Hypothetically speaking...and assuming you have your 401K invested in mutual funds or some diversified portfolio that will return you an average of 12%....And assuming your annuity plan is returning 8%...And assuming that inflation averages about 4% a year--so you have to "increase your principal" by 4% a year to keep up with inflation....

You would get 8% of your 401K monies as annual return and 4% of your Annuity plan as annual return. To convert your numbers into dollars...You would generate an annual income of $24,000 from the 401K and $8,000 from the Annuity plan...For an annual income of $32,000 before taxes forever and ever....without touching the principal balance in the 401K.

Answer 2

believe on what you think (grammybuddi)