A couple on track to have $1.6 million by 60 would withdraw $67,000 yearly under the 4% rule. They earn $300,000 now but worry that amount won't cover their lifestyle in retirement, even with the house paid off.
You will have about $1.6 million at the age of 60.
Mm-hmm.
If you take 4% of that money every year, you can safely withdraw 4%.
Oh yeah, you were just talking about this.
Yeah, the 4% rule. So that would give you per year of income $67,000.
Yeah. So we'd have to live on $67,000 a year. Yes. We would have to have no housing costs or—
Housing would have to be paid off.
Yeah.
So that's one. And what else? Just consider that the two of you make $300,000 today. Yeah, I mean, our—
all of our fixed costs would be probably just going to that, basically, and then we wouldn't have any guilt-free spending. Yeah, we would be struggling. I think it would be tough.
Yeah.
