In today's video, we're going to take a look at a couple that is retiring with $3 million

in their portfolio, and they know they can probably live a pretty comfortable retirement,

but they want to know exactly how much they can spend before they run the risk of running out

money. So what we're going to do is we're going to jump into their plan to show you what they

should be looking at, meaning it doesn't actually matter if you watching this have $ 3 million, 30 million, or 300,000 in your portfolio, the principles we're going to look at

are going to be very relevant regardless of where you are your net worth.

This is another episode of Ready for Retirement. I'm your host, James Cannell, and I'm here

to teach you how to get the most of the life with your money. And now, on to the episode.

So to illustrate this, let's take a look at Jeffrey and Cindy Samples Plan.

As you can see here, they have about $3 million in their portfolio between some investment

account, an IRA, and a 401k.

They also have a property, but they're not going to spend down their property.

That's simply an illiquid asset that they are living in.

What they really want to know is can we use this or how much

of this can we use to maximize our income and what is that max amount of income we can spend.

So here's where we started with them. As you can see, Jeffrey and Send your 66 and 64,

their goals are to retire right now. Jeffrey at 66, Cindy at 64. To start with, we're going

to assume that they want to spend $7,000 per

month after taxes throughout retirement on core basic living expenses. On top of that, we're going to

assume $30,000 per year for travel, but we're only going to assume that for the first 12 years

of retirement, knowing that once they're in their older years, they're probably not traveling as

much as they would be in those earlier years. In addition to that, we're projecting out some health care costs. So Jeffrey

...