I found goldielock's

bucket calculation method from another thread and thought it made a lot of sense, especially in terms of thinking about how much I would need at each phase of our retirement. Like goldielocks did, I calculated from Phase 4 backwards.

I'm not very good at this math so I would really, really appreciate help from MMM'ers to check my calculations. Is $500k + CPP/OAS/pensions REALLY all I need to retire 3 years from now?

**Phase 4 (75 - 95) ** *note: updated to increase desired income from $27k to $35k*

My CPP $3765 + OAS $6839 = $10,604/year

DH's CPP $2465 + OAS $6839 = $9304/year

DH's old US Defined Benefit Pension = $3360/year

DH's new Cdn Defined Benefit Pension = $4000/year

(both pensions have 100% survivorship rights)

Total $27,268

Extra desired income (for $35,000 total): $7732

Money needed to fund 20 years at $7,732, with the total invested at 4% moderate conservative asset mix, net of inflation.

= PV(rate, nper, pmt, FV, beg/end)

=PV(0.04,20,-7732,0,0)

= $105,080 at age 75.

Money in today's dollars : (has 30 years to compound until age 75, again at 4% interest net of inflation).

=$32,398.13

**PHASE 4 -- Money needed in today's dollars: =$32,398**Should be plenty for this stage in our lives. We will also likely get some GIS supplements. And whatever is leftover from our other phases plus our paid-off house which we are not including in our savings calculations. Best of all, all this income is regularly adjusted to cost-of-living.

*note: our CPP estimates are low because I was a SAHM for many years - only 7/8 yrs of working life under my belt. DH worked in the US for most of his career. If we retire in 3 yrs, he will only have 4 yrs of working life in Canada under his belt.

**Phase 3 -- Age 65 to 75** Slowing down, but still travelling

DH's CPP+OAS+ both pensions: $16,664

I am 9 years younger than DH so will not have access to CPP/OAS yet.

Extra desired income: 18,336(for $35k annual total)

Money needed to fund 10 years at $18,336, with the total invested at 4% moderate conservative asset mix, net of inflation.

= PV(rate, nper, pmt, FV, beg/end)

=PV(0.04,10,-18336,0,0)

= $148,721 at age 65.

Money in today's dollars : (has 20 years to compound until age 65, again at 4% interest net of inflation).

=$67,874

**PHASE 3 -- Money needed in today's dollars: =$67,874****Phase 2 -- Age 55 to 65** Kids fully launched, fully retired, golden years

Desired income after tax is $35,000 per year

Money needed at age 55, to last 10 years at 4% interest net of inflation...

=PV(0.04, 10, -$35000,0)

= $283,381

Money in today's dollars : (has 10 years to compound until age 55, again at 4% interest net of inflation).

=$191,442

**PHASE 2 -- Money needed in today's dollars: =$191,442****Phase 1 -- Age 48 to 55** Early retirement, teens almost grown, likely supplemented by part-time/contract employment to pay for any luxuries or add to savings.

7 years x $40000 = $280,000

**PHASE 1 -- Money needed in today's dollars: =$248,918**Total needed for all phases in today's dollars:

Phase 4 $32,398

Phase 3 $67,874

Phase 2 $191,442

Phase 1 $248,918

**Total $540,632***Updated: I only get a 74% success rate on thefourpercentrule.com. This calculator lets me have 2 phases: Age 48 - 54: $40k and Age 55 - 95 at $35k. I originally showed a 94.5% success rate on Firecalc with a $40k annual spend (and reducing spend by 2-3% from age 56 - 76). Upon a closer look, this spend reduction dropped me down to an unacceptable $18k - $24k over a period of 6-7 years.

Looks like the main difference is interest rates. I had an optimistic 4% rate of return (7% avg interest - 3% avg inflation).