Originally Posted by
Excargodog
ROUGH rule of thumb is to have enough in investments to be able to live on the Required Minimum Distribution percentage you have for an IRA or 401k and everything your investments earn above that would be reinvested.
https://www.irs.gov/retirement-plans...2031%2C%202022).
ROUGh approximation is being able to live on 3% of your investment earnings until age 72 and 4% (increasing constantly as you age) thereafter. So if you retire at 65 with $5 million in investments plan on getting by on $150k a year until age 65. Pensions and medical coverage from a previous career (ie., retired military) obviously can seriously alter that number of course.
That's pretty conservative. Conventional wisdom is 4% first year, and then adjust for inflation in subsequent years.