newtoseattle
Recycles dryer sheets
I've been meaning to introduce myself, but its hard to "sum" up all financial thoughts! (and I'm not as poetic as some posters). But I do appreciate the forum and all the time you all have spent developing it so...
I have always been LBYM's type. In my early days it was more of the "live simply so that others may simply live" philosophy. So lived on below taxable income for years. Then, got a high paying job and gave away some but saved a great deal in a fairly short time period. Now have a significant other and so spending has gone up quite a bit. But I'm happy...
So plan
I have about 1.1 million in savings (not including house, etc). About 70/30. No debts. When I first started saving I was mostly all CD's, etc, but have gradually come to agree with most that I have to have some stock risk b/c of long term inflation risk.
I just moved to seattle and my living expenses seem to be hedging up (dang is food expensive here!) but I think 36000-42000 is likely reasonable (been tracking a couple years, but now need more updated seattle info)
It makes it easier for me to think of occasional expenses as more of a "reserve fund" (I learned all about those after being on a condo board!). So I plan for savings to support basic living (42000) at 3%withdrawal rate. Then an additional $400,000 total (250000 for health care - not premium, but out of pocket, 100,000 house fund, 50000 cars). Basic living includes most day to day house stuff - little plumbing, new light fixture, etc, so "reserve" is for big stuff). Thinking I need 1.6-1.8 million total
Not really counting social security, but believe there will be some (won't be a ton, but still nice - I anticipate it covering medicare premium and medigap policy)
Plan to try to dial back to maybe 50-55% equities in a couple years - I get a little confused on how all the experts/papers come up with such variance, but liked Pfau's analysis. I guess I'm thinking that as long as I am going reasonably low with withdrawal rate (3%) and want a very low "failure" rate that it seems to support the lower than firecalcs "optimum" % of stocks?
Anyway - I'm rambling a bit. Mostly wanted to finally say "hi" to participate. I don't think my experience is particularly instructive, but on the other hand I really appreciate seeing other people's actual "numbers". Its reassuring I suppose - we will all swim or sink together!
Thanks again.
I have always been LBYM's type. In my early days it was more of the "live simply so that others may simply live" philosophy. So lived on below taxable income for years. Then, got a high paying job and gave away some but saved a great deal in a fairly short time period. Now have a significant other and so spending has gone up quite a bit. But I'm happy...
So plan
I have about 1.1 million in savings (not including house, etc). About 70/30. No debts. When I first started saving I was mostly all CD's, etc, but have gradually come to agree with most that I have to have some stock risk b/c of long term inflation risk.
I just moved to seattle and my living expenses seem to be hedging up (dang is food expensive here!) but I think 36000-42000 is likely reasonable (been tracking a couple years, but now need more updated seattle info)
It makes it easier for me to think of occasional expenses as more of a "reserve fund" (I learned all about those after being on a condo board!). So I plan for savings to support basic living (42000) at 3%withdrawal rate. Then an additional $400,000 total (250000 for health care - not premium, but out of pocket, 100,000 house fund, 50000 cars). Basic living includes most day to day house stuff - little plumbing, new light fixture, etc, so "reserve" is for big stuff). Thinking I need 1.6-1.8 million total
Not really counting social security, but believe there will be some (won't be a ton, but still nice - I anticipate it covering medicare premium and medigap policy)
Plan to try to dial back to maybe 50-55% equities in a couple years - I get a little confused on how all the experts/papers come up with such variance, but liked Pfau's analysis. I guess I'm thinking that as long as I am going reasonably low with withdrawal rate (3%) and want a very low "failure" rate that it seems to support the lower than firecalcs "optimum" % of stocks?
Anyway - I'm rambling a bit. Mostly wanted to finally say "hi" to participate. I don't think my experience is particularly instructive, but on the other hand I really appreciate seeing other people's actual "numbers". Its reassuring I suppose - we will all swim or sink together!
Thanks again.
