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Are you totally dependent on investments
Old 06-01-2018, 09:27 PM   #1
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Are you totally dependent on investments

Are you totally dependent on your investments earnings/growth for income through retirement?

Will SS, a pension or other income be sufficient for your expenses to live on or does your investment need to grow to have enough for expenses through retirement years?
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Old 06-01-2018, 09:38 PM   #2
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My real estate investments represent 100% of my income, I’m not counting on SS and don’t have a pension. So far the investment has grown and paced inflation, if it sustains that trend my retirement is secure.
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Old 06-01-2018, 09:43 PM   #3
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I wouldn't think inflation would over take your investment growth over the long haul. You have a great plan and at anytime could increase your spending if you or you had too.
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Old 06-01-2018, 09:43 PM   #4
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Yes. SS will eventually only provide part of what I need.

So far (11 years) my stock dividends provide more than I need, and have grown about 7-8% annually, giving me plenty of cushion.
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Old 06-01-2018, 10:00 PM   #5
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My ER is split into two parts when it comes to my financial resources. From age 45, when I ERed nearly 10 years ago, through age ~60, I am dependent on only the taxable portion of my portfolio. When I was putting together my ER plan in 2007-08, I had anticipated the possibility of having to dip into principal if the dividend income generated by my taxable portfolio wasn't enough. That hasn't happened, thankfully, although I have had to take slightly more of my dividends as cash instead of reinvesting them. As another bonus, that principal has grown quite a bit in the last 10 years even though nearly 2/3 of it is in bonds.


The second part of my ER plan begins at age ~60 when the first of my "reinforcements" arrive. Those reinforcements include (a) unfettered access to my IRA, (b) my frozen company pension, and (c) Social Security. The income from those 3 sources, when added to the current dividend income, will only make things easier.
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Old 06-01-2018, 11:04 PM   #6
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No pension, not counting on SS although would be icing on the cake. Totally dependent on portfolio.
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Old 06-02-2018, 01:24 AM   #7
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Same as Goodwishes. 100% dependent on the portfolio.
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Old 06-02-2018, 04:19 AM   #8
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Right now, 1/3 of my spending is covered by a pension, and 2/3 from investments. The pension is not COLA, so its portion could fall to as low as 10% in 30 years.
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Old 06-02-2018, 04:30 AM   #9
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Prediction is ~ 50/50 although only in first year of retirement. Slightly scary, but trusting the calculators and ability to be flexible.
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Old 06-02-2018, 05:35 AM   #10
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Roughly 1/2 from SS and the rest from portfolio.
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Old 06-02-2018, 06:09 AM   #11
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Mine is about 75% out of portfolio money that is in CD ladder accounts. The other 25% comes from other income.

When I start taking SS a very small % will be taken from CD's at that time. My invested money at this time I haven't had to touch yet.
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Old 06-02-2018, 06:15 AM   #12
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Quote:
Originally Posted by street View Post
Are you totally dependent on your investments earnings/growth for income through retirement?

Will SS, a pension or other income be sufficient for your expenses to live on or does your investment need to grow to have enough for expenses through retirement years?
Yes, completely dependent on investments now in retirement. And that’s what we draw on for annual income.

No, SS will just pay the taxes on itself after Medicare deductions. We don’t count on it for income.

Fortunately investments have already grown to be sufficient for our needs - at least so far (knock on wood).
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Old 06-02-2018, 06:25 AM   #13
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Was totally dependent on investments for the first 5 years.... then my small pension (~20% of our spending) started, plan to take SS at FRA for DW and either FRA or 70 for me. Once SS starts, pension and SS will cover 50% or more of our spending, though the percentage will decay as the pension is non-cola.

We are total return investors... not dependent on income from investments and have no problem dipping into capital if we have a bad year or the need arises... though that is unlikely to happen regularly.
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Old 06-02-2018, 06:39 AM   #14
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At 55 I plan on spending pension, taxable account and stock grants until I can hit 401k and multiple iras
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Old 06-02-2018, 06:40 AM   #15
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Plan to retire in 3 years @ 55. 50% covered by COLA pension (military). If SS is still around at 70, 100% will be covered. So all I have to do is survive until 70, right? I may take SS @ 62, but we'll see. My best benefit I got from retiring from the Navy was very low cost health care for life. I spend about $3000 / year for a family of 4 right now. Once I hit 65, Tricare for Life kicks in and I have a nice Medicare supplement for life.
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Old 06-02-2018, 06:45 AM   #16
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Yes - no pension and not yet taking SS. Living on cash until it runs out - then start dipping into the portfolio.
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Old 06-02-2018, 06:47 AM   #17
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I plan on retiring in 2 years at age 61. My intention is to live off of taxable investments and
tIRA balances for the first 9 years until age 70. I plan on about ~6% WR for
those 9 years. Hope to do some Roth conversions as well during that time.

At age 70 I plan to have SS and modest pension start up with most of my remaining
portfolio in Roth by then. I have a 35 year max'ed SS record and my pension should
about equal SS depending on annuity interest rates at that time. So I hope to have
the proverbial 3 legged stool waiting at age 70. I can live off of any 2 legs of the
stool, just hoping to avoid major hits to 2 or 3.
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Old 06-02-2018, 06:50 AM   #18
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No Pension(s), just our Stash, 60% Taxed and 40% Tax Deferred (IRAs). SS will cover taxes when we take from our IRAs. We pay Taxes on the return of our Taxed Stash. We just take out what we need when we need it as we keep a decent float in MM.
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Old 06-02-2018, 06:51 AM   #19
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^^^^^ What the story with capitalization?
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Old 06-02-2018, 06:56 AM   #20
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^^^^^ What the story with capitalization?
More Polite than ALL CAPS, kinda like Bolding... , plus it is a habit. Does it even matter?
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