2007-05-30 05:06:41 · 7 answers · asked by Alice 1 in Business & Finance ➔ Personal Finance
I would think so, It depends on the lifestyle they live. And Medical bills.
pl
2007-05-30 05:15:03 · answer #1 · answered by Patrick 5 · 0⤊ 0⤋
Let's crunch a couple numbers without getting too complicated. With $400,000 in investments, and most of them in safe funds since you are 65, you will more than likely receive about 6% in investment income. This means that after you take $30,000 out, you will be left with $370,000. Factor in your 6% interest and you are back up to $392,200. Next year, you will take another $30,000 and you have $360,000. Factor in interest of 6% and you're back up to $383,932.
So you see, in two years you have withdrawn $60,000 and you are only down a little over $16,000.
I did a quick calculation based on that withdrawal rate and you would be able to sustain that type of retirement for about 25 years. Obviously, there will be better returns in some years and not-so-good returns in others so the number of years may change.
Add social security into the plan and you may not need all $30,000 from the 401(k) and IRA. Also, in later years, you may not need the same level of income due to inactivity and more relaxation. I would also recommend a long term care insurance policy to keep from using your hard earned 401(k) money for that.
Ron, ChFC
2007-05-30 07:02:31 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I am 67 and made 35,000
I retired at 55 on 18,000 On a very tight budget.
SSA kicked in at 65 and I am solvent today.
I live more like a hermit but I need nothing and I visit family 400 miles away often.
I say yes and some what comfortable also.
Good Luck
2007-05-30 05:26:55 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Use this calculator to see how long the money will last.
Typically retirees find something else to do and not just sit around all day wasting away. That something else could be a hobby as a part time job bringing in some money which will add to the length of time the funds will last.
http://www.geocities.com/twong18
2007-05-30 07:08:54 · answer #4 · answered by roger_v_kint 3 · 0⤊ 0⤋
I certainly think so. Just as long as he's careful to what he spends. Most people get paid that much per year and have lots of debt. But if he wants to travel alot, then I suggest to save more.
2007-05-30 05:14:56 · answer #5 · answered by nbt95337 3 · 0⤊ 0⤋
Yes but he won't be able to live that way for too many years. Probably at best 5 years.
2007-05-30 05:18:16 · answer #6 · answered by jcrichton33 3 · 0⤊ 0⤋
Should be able to live comfortably, as long as you don't live really high.
2007-05-30 05:54:18 · answer #7 · answered by Judy 7 · 0⤊ 0⤋