Thankfully JP Morgan has come up with a much better way to calculate your withdrawal rate because the 4% rule no longer applies.. So they say.
Check it out here..
http://blogs.marketwatch.com/encore/2014/03/04/rethinking-the-4-retirement-spending-rule/The good news is if you are a 60 year old couple and have a GURANTEED income Ask the Detroit pensioners how well that works) of $50k, you can afford to withdraw over 5% of of your $500k nest egg.
Ok so thats $50k pus 5% of 500k equals $75,000 a year.
No I may be missing something but why on Earth would a retired couple need an income of $75,000 a year if they have no debt?..
Anyway if you feel like paying JPM money for their super retirement calculator be my guest... Personally I'll stick with the 4% rule plus adding some margin such as rental income, peer to peer lending etc and NOT pay JPM..:)
Frank