Monthly income in one simple equation?

[merlin7676]

Like most people on here, I have a spreadsheet to track debt, income, budget, ect...it's a variation of the one sheet to rule them all.
But I have a column to track how much monthly income (at 4% withdrawl rate) I would receive if I pulled the trigger now.  The calculation is:

(net worth * 0.04)/12  so for example if my net worth was $250,000 then 250000*0.04/12=$833 a month.

Is it really that easy or am I missing something?

I realize that's not including taxes and whatnot but for a easy "about around this much" is this accurate?

[andy85]

Yes, it is that simple. Although if your NW is largely comprised of anything other than what i deem "available funds", I would be hesitant in using my NW number. I have a column for "available funds" (401k, ira, brokerage, cash, etc) and then a NW column (which just adds in my home equity)

[MDM]

And it does include taxes.  Or, perhaps better said, it does need to include taxes because the 4% guideline is based on all expenses - and taxes are an expense.

[nobodyspecial]

Or even simpler, each $300 saved = $1/month income