Bucket strategy
Split the corpus into cash for the next couple of years, debt for the years after, and equity for the long run. Refill each year.
The buckets last 29 years
Paying $4,000 a month, rising 6% a year, the money runs out around age 89. A bigger equity bucket or lower spending stretches it.
Shown in future amounts. Turn on Today’s money to adjust for 6% inflation.
Starting split
Blended starting return: 9.1% a year.
Bucket balances
Each year, cash is topped up from debt, and debt from equity, so the next few years of spending never depend on the market.
Your ageShow the numbers as a table
| Age | Cash | Debt | Equity |
|---|---|---|---|
| 60 | $96,000 | $304,024 | $599,976 |
| 61 | $50,806 | $325,306 | $665,973 |
| 62 | $53,855 | $344,824 | $686,046 |
| 63 | $57,086 | $365,514 | $705,136 |
| 64 | $60,511 | $387,445 | $722,944 |
| 65 | $64,142 | $410,691 | $739,124 |
| 66 | $67,990 | $435,333 | $753,284 |
| 67 | $72,070 | $461,453 | $764,974 |
| 68 | $76,394 | $489,140 | $773,678 |
| 69 | $80,977 | $518,488 | $778,814 |
| 70 | $85,836 | $549,597 | $779,716 |
| 71 | $90,986 | $582,573 | $775,631 |
| 72 | $96,445 | $617,528 | $765,706 |
| 73 | $102,232 | $654,579 | $748,975 |
| 74 | $108,366 | $693,854 | $724,345 |
| 75 | $114,868 | $735,485 | $690,586 |
| 76 | $121,760 | $779,615 | $646,306 |
| 77 | $129,066 | $826,391 | $589,941 |
| 78 | $136,810 | $875,975 | $519,729 |
| 79 | $145,018 | $928,533 | $433,686 |
| 80 | $153,719 | $984,245 | $329,587 |
| 81 | $162,942 | $1,043,300 | $204,928 |
| 82 | $172,719 | $1,105,898 | $56,902 |
| 83 | $183,082 | $1,058,850 | $0 |
| 84 | $194,067 | $936,502 | $0 |
| 85 | $205,711 | $793,803 | $0 |
| 86 | $218,054 | $628,619 | $0 |
| 87 | $231,137 | $438,627 | $0 |
| 88 | $245,005 | $221,296 | $0 |
| 89 | $234,308 | $0 | $0 |
| 90 | $0 | $0 | $0 |
Year-by-year table30 years
| Age | Spent | Cash | Debt | Equity |
|---|---|---|---|---|
| 60 | $48,000 | $50,806 | $325,306 | $665,973 |
| 61 | $50,880 | $53,855 | $344,824 | $686,046 |
| 62 | $53,933 | $57,086 | $365,514 | $705,136 |
| 63 | $57,169 | $60,511 | $387,445 | $722,944 |
| 64 | $60,599 | $64,142 | $410,691 | $739,124 |
| 65 | $64,235 | $67,990 | $435,333 | $753,284 |
| 66 | $68,089 | $72,070 | $461,453 | $764,974 |
| 67 | $72,174 | $76,394 | $489,140 | $773,678 |
| 68 | $76,505 | $80,977 | $518,488 | $778,814 |
| 69 | $81,095 | $85,836 | $549,597 | $779,716 |
| 70 | $85,961 | $90,986 | $582,573 | $775,631 |
| 71 | $91,118 | $96,445 | $617,528 | $765,706 |
| 72 | $96,585 | $102,232 | $654,579 | $748,975 |
| 73 | $102,381 | $108,366 | $693,854 | $724,345 |
| 74 | $108,523 | $114,868 | $735,485 | $690,586 |
| 75 | $115,035 | $121,760 | $779,615 | $646,306 |
| 76 | $121,937 | $129,066 | $826,391 | $589,941 |
| 77 | $129,253 | $136,810 | $875,975 | $519,729 |
| 78 | $137,008 | $145,018 | $928,533 | $433,686 |
| 79 | $145,229 | $153,719 | $984,245 | $329,587 |
| 80 | $153,943 | $162,942 | $1,043,300 | $204,928 |
| 81 | $163,179 | $172,719 | $1,105,898 | $56,902 |
| 82 | $172,970 | $183,082 | $1,058,850 | $0 |
| 83 | $183,348 | $194,067 | $936,502 | $0 |
| 84 | $194,349 | $205,711 | $793,803 | $0 |
| 85 | $206,010 | $218,054 | $628,619 | $0 |
| 86 | $218,370 | $231,137 | $438,627 | $0 |
| 87 | $231,473 | $245,005 | $221,296 | $0 |
| 88 | $245,361 | $234,308 | $0 | $0 |
| 89 | $238,152 | $0 | $0 | $0 |
How this is calculated
At the start, cash holds 2 years of spending and debt holds the 5 years after that (each year raised for inflation). The rest goes to equity.
then: debt ← equity up to the next 5 yrs
each month: spend from cash, then grow each bucket
Refills happen every year here. Many people refill from equity only after a good year, which steady returns can’t show. If cash runs dry, spending falls back to debt and then equity.
Returns are assumed steady, and tax isn’t modelled.