How long will my money last?

[Samuel]

I’m trying to build a retirement calculator. If I have a $500k nest egg, how long will my money last with inflation?

 

[Adam]

Status of your money depends on how much you withdraw yearly, what is your investment return and the rate of inflation, however as a basic illustration: if you take out $25,000 yearly (5%) from a $500k portfolio that is generating ~6% annually with 3% inflation, your money might last for about 25-30 years; if the returns are lower or the withdrawals are higher, it may be depleted within 15-20 years, therefore keeping the withdrawals around 34% and having the growth exceed inflation will go a long way in the sustainability of the fund.

 

[Blaise]

How long your money lasts depends on savings, monthly expenses, income, investments, and inflation. Divide your total savings by your monthly spending for a basic estimate. For long-term planning, consider returns, lifestyle changes, and emergencies. A financial calculator or advisor can give a more accurate projection.

 

[Emly]

How long your money lasts depends on how much you have, your spending rate, and lifestyle. For example, if you have $100,000 and spend $2,000 per month, it would last about 50 months (just over 4 years). Adjusting spending, investments, or income can make it last longer or shorter.

 

[rajat]

To estimate how long your money will last, start by calculating your total savings and monthly spending. Divide your savings by your monthly expenses to get a rough timeline. For example, if you have $30,000 saved and spend $2,000 per month, the money could last about 15 months. A more accurate plan should include inflation, unexpected costs, and income sources like investments or part-time work. Financial planning tools or spreadsheets can help track this. If retirement is the goal, many planners also consider withdrawal guidelines such as the 4% rule.