increasing withdrawals by 3% every year for inflation. Only five years since 2000 has inflation been that high. So no wonder the hypothetical investor is on the edge of no money at all.
I'm 71 years old, and I take a bit less than 4% from my investments. I take it out on a monthly basis. That sum is about 25% of my monthly income. The rest is Social Security, two annuities, and a very small pension. Because I have those several income streams, my investments could drop by 50%, meaning I would need to cut my withdrawal by around that much. I'd still be okay. I'd still be able to meet all my expenses, have enough extra for various things I like to do (like attending science fiction cons). Right now I'm transferring a bit more than 10% of my cash flow to a savings account. I can then dip into that to pay for various luxuries like the trips I take. That could be cut way back and I'd be just fine.
I couldn't tell you off the top of my head just what percentages my investments are in different things, but I have a great financial guy, and it's probably about 60% in equities.
I also figure that, even though I hope to live well into my 90's (a solar eclipse I want to see is in 2045) I know that at some point I may not be able or willing to do the travelling I'm currently doing. I may also decide to move into independent/assisted living at some point, and that will probably cost a bit more than living in my own home has been. But I'd be selling this house, and while it's not yet paid off, I have decent equity in it which will help finance that move.
Oh, and I do have a policy that would cover a couple of years in a nursing home, if needed.
= new reply since forum marked as read