[USER]

Can someone help a newbie understand the Edward jones or other compounding calculator ? How do I figure out how much I can grow an investment of about $ 850k in 401k at 53 (current age).

If I start removing $ to live
At 62 or 63 roughly $50k I will need per year how do I figure out how much it will still continue to grow. Is there a different calculator I can use ?

Each year starting at 62 my principal will start being depleted but yet it will still grow ?

Hoping to have interest I can live off of and not have to touch too much principal .

I have about $150k in a Roth as well .

[Frank]

The best solution is to have nothing to do with Edward Jones. Or plan to work a lot longer.

[Kevin]

You can spend 4-5% of your invested balance annually and EJ is taking 1% annually right? So, EJ is taking about 20-25% of the money you could be spending. Ouch!!

Dump them asap and go to Fidelity, Schwab or Vanguard where there are no management fees.

[Barry]

I don’t have Edward Jones, so I’m not sure.
As to how much you can grow your investment, that depends greatly on how you invest.

In a money market fund or CD, maybe 4.5%. In the market, could be 10% but with a lot of volatility.

If you eventually move to a risk parity-style portfolio (recommended when you begin to draw down), maybe 7%?

You’re still accumulating, so you can afford to be 100% equities, but this is a good time to start learning about your investment options. Good luck!

[Prasad]

In ten years, you can roughly double your 850k to $1.7m with no further contributions, as long as you own good amount (70%+) in stocks.

You can safely withdraw 5% a year from it, so 85k/year. You can keep adding to it and retire sooner if you want to.

Listen to risk parity radio podcast to understand good retirement portfolios.

Start with these episodes: 1,3,5,7,9,12,14,16,19,21.

[Author]

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