Quote:
Originally Posted by rjm1cc
I default to the old safe withdrawal rule of 4%. Thus the 12,000 per year is worth 300,000. Actually more if it pays for your lifetime and if it has a spouse payment after you die worth even more. I consider it a part of the bond portfolio in a balance portfolio so a rough estimate works for me.
|
The 4 percent rule doesn't work for a 70 year old. For a man, $12,000 x 13 years = $156,000 in total payments. Slightly higher for a woman.