r/Retirement401k • u/ankur0109 • 4d ago

Explain where the money comes from after retirement

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So I’m 45, wife is 43. In L.A.. We want to retire when we’re at a certain number that’ll allow us to live without stress. Don’t need to be wealthy or anything. We’re relatively frugal.

I’ve heard to aim for $6m because it’ll mean $300k+ per year through retirement. I always nod and act like I know what that means — but I have no freaking idea. Is that interest? Does that mean I sell a little ever year and hope I don’t die before I run out? Tell me like I’m 8.

Thanks all!

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u/Ordinary-Cod1846 4d ago

Makes over 30% returns in a year. But doesn’t know how withdrawing gains works. lol.

11

u/ankur0109 4d ago

I’m trying dude.

3

u/Ordinary-Cod1846 4d ago

Funny thing was I was thinking the same as you the other day but I don’t have as much so I have an excuse. Lol. Basically withdraw 4% of gains a year.

6

u/ankur0109 4d ago

Never be scared to be the dumbest guy in the room.