Ocean

After year one Mr. Roads will be fine financially after his first year.

$750 * 12 = $9,000 → social security minus without inflation

+ $16,200 → interest from the portfolio

$25,200 → income for the year

$1,500 + $500 = $2,000 → expenses per month

* 12 → months in a year

$24,000 → expenses for the year

$25,200 - $24,000 = $1,200 → extra money at the end of the year

As you can see with both his social security money and the interest from his portfolio he will have some extra money at the end of the year. Given this Mr. Roads could take out only $15,000 of his interest at the end of the year and the extra money to his savings or keep it in preparation of inflation rates. Social Security is indexed and will provide real annual return of $9,000 regardless of the inflation. Year 1 he has portfolio and savings to try to get $1,250, which is not provided by Social Security. Income is 16,200 + 600=16, 800. In year 2, savings increase but expenses increase faster based off the calculations of income being 16,200 + .05 *13,800=16,890

Savings build through year 4. We must stay above $12,000 balance through year 7 then withdrawals will occur. At the end Mr. Roads will still have his $30,000 of his savings. Mr. Roads should reduce spending that is not covered by Social Security. Mr. Roads should spend without touching the $180, 000 in principal and without touching the $12,000 in savings. Mr. Roads should also set up annuity for his investment and add the Social Security and savings.