True you need that much if you do not touch the principle. Are you saying that is what the company has to put up for us to draw on?
If you are using that number for what you personally would need to achieve $130k a year? If it is in your account you should realistically be drawing down the principle over time. So to achieve $130k a year assuming 4% returns over 25 years ( assuming you live 25 years after you retire) you would need $2.1M. That is why trying to go with only a B fund to live off of is almost impossible to make up the difference.
If you throw in our current B Fund (25 year WB capt should have close to $900k in it) plus our A fund you could never match that with just a B fund.
I would like to see our B Fund keep increasing and the company contribute cash over cap which we could put into a IRA to help offset inflation.
This would keep the accountants happy because it would not increase the liability for the company, mean while allowing us to stave off the effects of inflation on our a Fund.
Originally Posted by
kronan
