Money question – I’m 67 years old, retired and have $600,000 in investments. Will this be enough if I live to age 95?

CNN Money answers this and offers retirement suggestions in a recent article:

It’s impossible to give a yes or no answer to your question because the length of time your nest egg will last depends on several factors, including how much you withdraw each year, how you invest and how sure you are that you can count on those withdrawals in the future.

One tool is Vanguard’s Retirement Nest Egg calculator. Even though this tool uses a sophisticated forecasting technique know as Monte Carlo simulation, it’s simple to use and interpret.

Begin by dragging the first of the tool’s three sliders to specify how long you want your portfolio to last. Given today’s long lifespans, you want to be careful not to enter too short a period. Your assumption of age 95, or 28 more years, seems sound.

Next, move the second slider to indicate the current size of your retirement portfolio — $600,000 in your case. Then drag the third slider to show how much inflation-adjusted annual income you’d like. You didn’t mention a figure, but let’s assume $30,000 a year, adjusted for inflation.

Read more:

http://money.cnn.com/2012/03/02/pf/expert/retirement_investing.moneymag/index.htm

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About UWF Center on Aging

The Center on Aging at the University of West Florida was established in the Fall of 2010 when the School of Psychological and Behavioral Sciences faculty along with assistance from Sponsored Research submitted a grant to the State University System Board of Governors in support of aging initiatives for Northwest Florida. Its mission is to improve the quality of life of aging adults through the application of science to address challenges associated with aging and to promote healthy aging, with an emphasis on prevention. This will be accomplished through inter-disciplinary and inter-professional efforts of basic and applied research, consultation, and partnerships with community agencies. Education and training, direct services to the aging population, and public awareness and understanding of the contributions and needs of elders will be primary objectives.
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