How much do retired people spend per year

[Caustic Burno]

I've heard that if you withdraw 5% annually from your 401K your money will last forever. Makes sense based on a 7% return every year.

Better be one fantastic account balance when you retire I guess.

Actually it gets down to taxes then . Don't draw 5% if less is enough. You can always draw more if needed and pay the tax. The more you draw also effects the percentage of SS that is taxable and can change your Medicare payment substantially. Neighbor drew out a large chunk to buy a piece of property, he is over 66 so he can make as much as he wants. His Medicare payment went to 800 bucks a month until the next year.

 

[shaz]

Actually it gets down to taxes then . Don't draw 5% if less is enough. You can always draw more if needed and pay the tax. The more you draw also effects the percentage of SS that is taxable and can change your Medicare payment substantially. Neighbor drew out a large chunk to buy a piece of property, he is over 66 so he can make as much as he wants. His Medicare payment went to 800 bucks a month until the next year.

Thanks,
That's good to know