Assumptions For Graph: Spend the Right Money First
1. Investor retires at age 65 with $1.1 million in qualified retirement accounts. 2. Assumes annual Social Security income of $25,000 + spousal of $12,500. 3. 24% ordinary tax rates. 4. Beginning annual spending of $84,000; adjusted for inflation annually by 3.5%. 5. 6.5% rate of return. 6. Actual dollars. 7. No state or inheritance tax is factored into the analysis.