Link to jump to start of content The Seattle Times Company Jobs Autos Homes Rentals NWsource Classifieds seattletimes.com
The Seattle Times STOP: The Seattle Times Opinion Blog
Traffic | Weather | Your account Movies | Restaurants | Today's events



Welcome to STop, the Seattle Times Opinion blog where our editorial writers and editors share their evolving thoughts on a variety of issues. STop is a place where opinion writers and readers can exchange views and readers can learn more about how editorial positions are formed.

The opinions you read below are those of the individual writers, not necessarily views that will become formal positions of The Seattle Times. Respond to STop
(Please be aware that your name and comments may be published here, unless you specify otherwise).

Currently, STop cannot automatically post readers' comments on the blog. However, the editorial staff will regularly post readers' comments. Your comments are sent directly to the individual editor or writer.

space space space

Jim Vesely
space
Jim Vesely
E-mail | Bio


Lee Moriwaki
space
Lee Moriwaki
E-mail | Bio


Joni Balter
space
Joni Balter
E-mail | Bio


Eric Devericks
space
Eric Devericks
E-mail | Bio


Lance Dickie
space
Lance Dickie
E-mail | Bio


Bruce Ramsey
space
Bruce Ramsey
E-mail | Bio


Kate Riley
space
Kate Riley
E-mail | Bio


Lynne Varner
space
Lynne Varner
E-mail | Bio


Ryan Blethen
space
Ryan Blethen
E-mail | Bio


August 03, 2005

A Reasonable Retirement

A reader disputes the statement that for a well-off retirement, you'll need a million and a half dollars to reach year 80. He writes:

One CAN reasonably expect to retire at age 65 with $1.5 million currently invested and withdraw $65,000 per year for 25 years or more --with a probability of success of 90% or more. And one doesn’t have to invest aggressively to make it work.

The best free “retirement income” calculator is at the website of T Rowe Price. Go to www3.troweprice.com/ric/RIC/ and take it for a spin. It’s “the best” because it does not rely on constant expected market returns, but something called a Monte Carlo simulation. The simulation creates several hundred future scenarios and counts up the number of times one realizes, or fail to realize, the goal.

As you’ve correctly noted, Social Security will provide a substantial portion of our retiree’s $65,000/year income goal. Perhaps, he’ll need at most another $30,000 from his own investments. In that case, a $650,000 nest egg will likely do the trick. Retirement, still under $1 million!

Rudi Bertschi, Seattle

Reply to this reader.

 
Posted by Bruce Ramsey at August 3, 2005 01:22 PM



Marketplace

November 2005

S M T W T F S
    1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30