[quote=harvey]T
What that means is that if you had a 401K you’d have to accumulate that much in your 22 years of service in order to withdrawal $30K a year for life after retirement. Of course you could not live as long or live longer but age 70 is a pretty typical life expectancy for a 40 year-old today.
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This works if you can accurately predict your lifespan to be below median.
You need much more in a 401K since life at 71 is going suck otherwise.
I’m planning for a worst case lifespan of 100. With Bernanke at the helm, I figure I can safely assume a 1% return after inflation. I should be able to get an inflation adjusted $30K/year from about $3M in a 401K.
