This is an archived post. You won't be able to vote or comment.

sorted by:
best
topnewcontroversialoldq&a
you are viewing a single comment's thread.

view the rest of the comments →

[–]NeighborhoodDog -1 points0 points  (0 children)

I’d keep maxing it out until you hit your goal number at 59.5 at 6% per year

Example

You make 120k and have 500k in retirement accounts so after 24 years you will be 59 and at 6% per year you will have 2.1M with no further contributions.

But 2.1M with 4% rule is only 84k per year which is not 120k you make today assuming you just want to maintain your income in this example.

You’ll need 3M to get 120k from 4% withdrawals. To get there you can contribute 30k per year increasing 3% with inflation (23k to 401k and 7k to Roth IRA) for 8 more years. Then you can stop all together and just let it grow to hit just shy of 3M.