We're 63 With $1.5 Million in IRAs and $4,500 Monthly Social Security. How Much Can We Spend in Retirement?

Core Insights - Retirement budgeting requires understanding both needs and capacity, where needs include monthly expenses and desired lifestyle, while capacity refers to reliable income generation from the portfolio [1] Group 1: Retirement Planning Steps - Step 1 emphasizes the importance of defining personal and financial goals for retirement, including priorities between returns and security [2][3] - Step 2 focuses on creating a budget that typically requires about 80% of pre-retirement income to meet in-retirement needs [4] Group 2: Housing Considerations - For homeowners, budgeting should include costs for taxes, insurance, and maintenance, while renters need to account for potential rent increases that often exceed core inflation [5] - The cost of living varies significantly by location, with areas like Michigan's Upper Peninsula being much cheaper than cities like San Francisco or Boston, highlighting the concept of "personal inflation rate" [6]