I spoke the other day about rich people whingeing that they don’t have enough to retire in luxury. In today’s news there is a 67 year old man who hates his job and wants to retire. However the poor thing only has $700K saved up. This only gives him $28K a year in interest. 
Poor old dear still hasn’t paid off his mortgage so how will he manage on that?
How the other half live.
That math doesn’t work out. 67 year old man has a life expectation of 81, that’s 14 years of withdrawals of 50k per year assuming 0 interest. Since they’re getting interest, it would be more than 50k
And what’re they supposed to do if they live to 82? In retirement planning you want to overestimate how long you’ll live because the alternative really really sucks. In this case they’re assuming a 4% withdrawal rate which is considered “safe” in that there’s only a 5-10% chance you run out of money before 30 years.
There’s only like a 0.1% chance he makes it to 97. Who cares if there’s a 10% chance he’ll run out of money at 97 when there’s a 99.99% chance he’ll be dead. Can’t spend money if you’re dead.
The 4% rule is useful rule of thumb if you’re like 50-60 when you retire. If you’re pushing 70, you can increase it.
Social Security data says that 3.16% of 67 year old men and 7.22% of women live to be 97. Bit high not to take into account when the stakes are putting food on the table.
ok so 97% chance of death. What I said remains correct, his late age of working means he can withdraw more than 4%. 4% is the rule of thumb for people retiring at 55, not at 67
We don’t know the gender of this person
Rule of 4% is just for a period of 30 years. The math doesn’t become less correct based on age. It was originally conceived in 1994 for people retiring 62-65. With increases in life expectancy since then I don’t think 67 is too far of a stretch to apply it.
Wow, you’re right. A lot of people in these comments have said they’re a man, but it doesn’t actually say that anywhere.
I was going off of this from OP, I thought they knew this person personally and didn’t see the hyperlink