Author Topic: how much would your 401k provide monthly  (Read 2379 times)

RunHappy

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how much would your 401k provide monthly
« on: December 09, 2014, 04:24:33 PM »
I found this fun calculator to help show how much monthly income your 401k would provide.  It only takes into account 401k, not other investments or other retirement accounts.

http://www.calcxml.com/do/ret09

sirdoug007

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Re: how much would your 401k provide monthly
« Reply #1 on: December 09, 2014, 06:47:23 PM »
This thing gives you wildly high monthly income estimates.  7 to 8% withdrawal rates!  You're at risk of burning through your money if you hit a flat spot in the market at those rates.  The calculation of the ending value is right but I wouldn't use the income estimates.

dude

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Re: how much would your 401k provide monthly
« Reply #2 on: December 10, 2014, 08:57:01 AM »
yeah, I prefer to use this one, inputting my own SWR (3-4%) or a monthly value, to see how it fares given certain inputs (inflation rate, rate of return, taxes):

http://www.calcxml.com/calculators/how-long-will-my-money-last

With a 3-4% rate, you know based on Bengen/Trinity Study it's got a very high probability of surviving based on past history, though of course the final balance after 30 years is dependent on a lot of factors (one does not earn a steady rate of return over the period, but rather it can fluctuate wildly from year to year).  A useful tool is all.