Simple calc for many of you, I am sure.
Panicked by high equity valuations and weak bond prospects, Joe decides to put his $1M retirement egg under the mattress, for keeps. He has 25y to live, he figures. He needs to take out $40k a year to live happily. (No heirs or charities, spend to zero.)
So he reckons he's all set if there were no inflation. But he knows that's not gonna happen.
So ... how much extra does he need to put under the mattress and leave there in order to draw $40k annually if inflation is 2.5% a year for 25y? How about if 3% ?