Here is the best way that I have found. All financial experts will tell you that to preserve capital and generate sustained cash flow, you should aim for withdrawing 4% in your first year of retirement and adjusting thereafter.
So, say you are going to need $75K in annual income to maintain your household, medical costs, travel and hobby costs, etc. That means you would need $75,000/0.04 = $1,875,000 - $1.9 mil sounds like a lot, but this is equivalent money, not cash in the bank.
Assume you are a couple, with combined Social Security of $3,000 a month. That becomes 3,000 x 12 / .04 = $900,000 (equivalent)
Assume your military pension will be $2,500 a month.
That becomes 2,500 x 12 / .04 = $750,000 (equivalent)
Say you've been putting money into the Thrift Savings Plan or IRA's or whatnot and have accumulated $200,000
That's simple -- it's $200K
So, you have $900K (equiv) from Social Security, $750K (equiv) from DOD, and $200K in retirement accounts -- total to date is $1,850,000 in cash and equivalents,
or 1,850,000 * .04 = $74,000 in expected income per year.
| 10.30.15 @ 18:06