how much money do I need to garantee a monthly income of 2000.
submitted by pam dereta in new york
That would depend on the interest rate and length of payment you got on your annuity.
I would also suggest considering the other possible factors:
Let's say you retire at the age 65 with a guareentee of 2k a month for the rest of your life.
At age 85, what is that $2,000 actually worth?
Based on an annual inflation of 3%, at age 85, your purchasing power would be $1,150.
The value of a set dollar amount is almost cut in half in a given 20 year timespan.
So, the question is, what else do I need to supplement my annuity?
Also, you need to consider the type of monies you are annuitizing. Are they qualified (pre-tax) or non-qualified (post-tax) or mixed?
If it is PURE qualified monies (like a 401k or IRA), then you have to pay income taxes on the ANY withdrawls you get.
$24,000, after you claim yourself and take a standard deduction, is in the 15% bracket. It is actually $22,220, or $1,851/month.
Put this number into the the inflation calculator (and assume they don't rasie taxes....another story all together!), and by 85, you end up with a time valuation of
$12,672 or
$1,056/month.
So, the question really is: will 2k be enough?
submitted by Andrew Burks in Salem, IN
@ June 12, 2009 - 09:09 AM
I would also suggest considering the other possible factors:
Let's say you retire at the age 65 with a guareentee of 2k a month for the rest of your life.
At age 85, what is that $2,000 actually worth?
Based on an annual inflation of 3%, at age 85, your purchasing power would be $1,150.
The value of a set dollar amount is almost cut in half in a given 20 year timespan.
So, the question is, what else do I need to supplement my annuity?
Also, you need to consider the type of monies you are annuitizing. Are they qualified (pre-tax) or non-qualified (post-tax) or mixed?
If it is PURE qualified monies (like a 401k or IRA), then you have to pay income taxes on the ANY withdrawls you get.
$24,000, after you claim yourself and take a standard deduction, is in the 15% bracket. It is actually $22,220, or $1,851/month.
Put this number into the the inflation calculator (and assume they don't rasie taxes....another story all together!), and by 85, you end up with a time valuation of
$12,672 or
$1,056/month.
So, the question really is: will 2k be enough?