Budgeting for retirement
Q. I'm looking to retire in a couple of years. How long would $600,000 last me if I withdrew $31,000 annually? I want my purchasing power to remain constant, with no decrease in my standard of living.
Wood recommends accessing a retirement income calculator online such as the one at http://troweprice.com/ric. But be aware, he says, that the retirement income calculator isn't a substitute for a comprehensive financial plan, and you shouldn't rely on it as your sole or primary means for making retirement planning decisions. "The projections are hypothetical—they simulate 500 future economic scenarios," he says. "The projections don't reflect actual investment results and aren't guarantees of future results."