Perhaps the title of Chapter 4--"What's Your Number?" should be changed to "What's Your Paycheck?" Many people approaching retirement want to know how much of a nest egg they will need to support their retirement goals. "What's my number?" is a typical question, and one I walk readers through in Chapter 4.
However, once people retire, some of them are reluctant to drawn down the sum of money they have accumulated for the purpose of providing retirement cash flow. Others go the other direction and spend too much because they feel rich with a huge amount of money burning a hole in their pockets.
Perhaps the better question to ask is this: “What’s my paycheck?" That is, they should be looking at the income they’ll be getting, rather than how they’ll be drawing down the lump sum they’ll been accumulating. This helps those worried about drawing down their nest egg to focus more on enjoying retirement with a predictable "paycheck" each month, rather than focusing on their account's value. It also forces the big spenders to budget their big ticket purchases and trips, just as they did while still working and receiving a monthly pay check.
The key, of course, is to find the sustainable paycheck to match your "number." Applying the 4% Rule in my book is a quick way to see what your "paycheck" might be with a given nest egg; however, engaging the services of a qualified financial planner can help you do that with more accuracy.