Retirement Mathematics

Lump Sum

$1.92 million (pre-tax) is required today to fund a payment stream of $100,000 annually for 30 years.  This assumes 2.5% inflation and a 6% rate of return annually.

1% Change in Rate of Return (RoR):

-1% :    A 5% RoR increases your lump sum need by 13% to $2.16 million.

+1%:   A 7% RoR decreases your lump sum need by 10% to $1.72 million.

These calculations do not account for any taxes due as a result of withdrawal from any pre-tax retirement account.

Are you wondering what your lump sum number is?  Is your nest egg big enough?  Will you outlive your money?

We’d be happy to do the math for you.  All you have to do is provide the following variables, and we will do the rest:

«     Your current age, your spouse’s current age

«     Your expected date of retirement

«     Your annual income need in retirement

«     Your existing streams of income

  • Your social security  benefit
  • Your spouses social security benefit
  • Pensions / Annuities / etc.

«     We will use Inflation assumptions of 2.5% (unless requested otherwise)

«     We will assume market returns of 6% (unless requested otherwise)

«     We will use a life expectancy of 95 (unless requested otherwise)

Click here to submit your request


P.S. Here are some helpful hints:

If you don’t know your monthly need, click here for a budget template.

Want to find out your Social Security benefit?  Click here.

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