return req after retirement

4% -inflation 500,000-current expenses 2mln-current portfolio 7%-expected nominal after tax return retirement in 7 years to maintain current lifestyle you need 500,000* (1.04^7) annual income in 7 years your portfolio will be 2mln*(1.04^7) after seven years Your return requirement is 500,000* (1.04^7)/ 2mln*(1.04^7) IS this return REAL AFTER TAX and I have to add inflation to get NOMINAL?

???

‘your portfolio will be 2mln*(1.04^7) after seven years’. How can we assume this? The portfolio can be less than or greater than $2mn depending on your investment returns in the next 7 years? Am I wrong??

atpr Wrote: ------------------------------------------------------- > 4% -inflation > 500,000-current expenses > 2mln-current portfolio > 7%-expected nominal after tax return > retirement in 7 years > > to maintain current lifestyle you need 500,000* > (1.04^7) annual income in 7 years > your portfolio will be 2mln*(1.04^7) after seven > years > Portfolio = 2 M * (1.07^7) > Your return requirement is 500,000* (1.04^7)/ > 2mln*(1.04^7) > > IS this return REAL AFTER TAX and I have to add > inflation to get NOMINAL? yes Yes

fsa-sucker Wrote: ------------------------------------------------------- > atpr Wrote: > -------------------------------------------------- > ----- > > 4% -inflation > > 500,000-current expenses > > 2mln-current portfolio > > 7%-expected nominal after tax return > > retirement in 7 years > > > > to maintain current lifestyle you need 500,000* > > (1.04^7) annual income in 7 years > > your portfolio will be 2mln*(1.04^7) after > seven > > years > > > > Portfolio = 2 M * (1.07^7) Now it makes sense.