Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Accumulation or Withdrawal Phase - Still Deciding
Old 01-19-2007, 02:23 PM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
TromboneAl's Avatar
 
Join Date: Jun 2006
Posts: 11,197
Accumulation or Withdrawal Phase - Still Deciding

I retired in '06 but for two more years I'll be receiving capital gains from the sale of my business. Also, I have two more years of college to pay for.

I've figured that I won't start my 4% SWR withdrawal strategy until those two years are done, that is, I'll continue to LBMM, and continuing to accumulate.

However, I realized recently that I could think of myself as in the withdrawal phase where, annually,

Spending + College - Capital Gains = 4% of egg

If I do that, I should start spending more money immediately. I'm leaning towards that.

__________________

__________________
Al
TromboneAl is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Accumulation or Withdrawal Phase - Still Deciding
Old 01-19-2007, 02:39 PM   #2
Recycles dryer sheets
 
Join Date: Dec 2006
Posts: 149
Re: Accumulation or Withdrawal Phase - Still Deciding

Could you expand on how you sold your business ? Did you structure the payments with the buyer ?

I plan on selling my business in a few years and I'd sure like to hear from others how they handled their transactions.
__________________

__________________
"Watch your topknot"
Empty Pockets is offline   Reply With Quote
Re: Accumulation or Withdrawal Phase - Still Deciding
Old 01-19-2007, 02:44 PM   #3
Recycles dryer sheets
 
Join Date: Dec 2006
Posts: 182
Re: Accumulation or Withdrawal Phase - Still Deciding

TA - As my DW would say, "You think way too much about this stuff." She's probably right, but heck, you gotta plan....don't you?

Your line of thinking isn't too much different than mine. Although I like to think of myself as ER, we still bring in a few bucks from a little work each year...and likely will for a few more years. When I look at our finances though, I also come up with the idea that I could/should start spending more. The bottom line for us is that we still just keep living our life the way we normally would. I'm not likely to accelerate spending just because I can. Of course, the fact that you CAN spend more tends to make you feel a little bit better. Enjoy!
__________________
lowflyer is offline   Reply With Quote
Re: Accumulation or Withdrawal Phase - Still Deciding
Old 01-19-2007, 02:59 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
TromboneAl's Avatar
 
Join Date: Jun 2006
Posts: 11,197
Re: Accumulation or Withdrawal Phase - Still Deciding

Quote:
Could you expand on how you sold your business ?
I got a lot of good advice on this forum concerning selling it.

Essentially, the new owner got the business (http://www.ResponsiveSoftware.com), and he's paying me about half of the gross for three years. He's a great guy, and it's working out quite well.

LF, yes your analysis is right. We've had a lot of "Can I learn to spend more?" threads here. I've realized this: I think I can spend more, but I can't waste money.

For example, we heat our house with firewood, and I don't leave the fire going all night. In the morning the living room can be 52 to 60 degrees.

Now, I could just use our furnace, and set the temp to 64 at night, and, say 68 in the morning before we wake up. That would be nice, but I just can't see using all that propane to keep all of the rooms warm at night when no one's in them. Also, it would mean that I have to buy propane in the winter, when it's expensive.

So, I'm not sure whether I'd be able to spend (waste?) money in that way. But I am thinking of a nice surfing vacation in San Diego, Mexico, or Hawaii.
__________________
Al
TromboneAl is offline   Reply With Quote
Re: Accumulation or Withdrawal Phase - Still Deciding
Old 01-19-2007, 04:57 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 13,275
Re: Accumulation or Withdrawal Phase - Still Deciding

Sorry TA.... but being warm to me is NOT a waste of money.... I do have it set to 73 in the morning... and I do warm the whole house...

But, you can get a timer plug and use an electric room heater and have it just heat the one room you need...

PS... I also pay to keep my house cool in the summer...
__________________
Texas Proud is offline   Reply With Quote
Re: Accumulation or Withdrawal Phase - Still Deciding
Old 01-19-2007, 05:26 PM   #6
Full time employment: Posting here.
Dog's Avatar
 
Join Date: Apr 2006
Posts: 781
Re: Accumulation or Withdrawal Phase - Still Deciding

Quote:
Originally Posted by TromboneAl
I got a lot of good advice on this forum concerning selling it.



For example, we heat our house with firewood, and I don't leave the fire going all night. In the morning the living room can be 52 to 60 degrees.

Now, I could just use our furnace, and set the temp to 64 at night, and, say 68 in the morning before we wake up. That would be nice, but I just can't see using all that propane to keep all of the rooms warm at night when no one's in them. Also, it would mean that I have to buy propane in the winter, when it's expensive.

This must be a NW thing (TA, I have the impression you are from the NW). Anyway, DH and I are much the same. We will bundle up in the house just to keep the thermostat set low. This winter has been a struggle with the storms and snow. We keep telling each other to live large and just heat the house!
__________________
"Tell me, what is it you plan to do with your one wild and precious life?" - Mary Oliver
Dog is offline   Reply With Quote
Re: Accumulation or Withdrawal Phase - Still Deciding
Old 01-19-2007, 06:08 PM   #7
Moderator Emeritus
Khan's Avatar
 
Join Date: Aug 2006
Location: Pine Island, Florida
Posts: 6,868
Send a message via AIM to Khan
Re: Accumulation or Withdrawal Phase - Still Deciding

I can't make myself turn up the thermostat (60 day, 50 night).

I am going to buy some more warm socks.

Any sock suggestions?
__________________
"Knowin' no one nowhere's gonna miss us when we're gone..."
Khan is offline   Reply With Quote
Re: Accumulation or Withdrawal Phase - Still Deciding
Old 01-19-2007, 06:51 PM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
TromboneAl's Avatar
 
Join Date: Jun 2006
Posts: 11,197
Re: Accumulation or Withdrawal Phase - Still Deciding

Note that it's plenty warm in the living room once the fire has been going for an hour or two. I do most of my web surfing in front of the fire (as now), so we're not depriving ourselves that much. It's just that first half-hour in the morning.
__________________
Al
TromboneAl is offline   Reply With Quote
Re: Accumulation or Withdrawal Phase - Still Deciding
Old 01-19-2007, 06:57 PM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
donheff's Avatar
 
Join Date: Feb 2006
Location: Washington, DC
Posts: 8,643
Re: Accumulation or Withdrawal Phase - Still Deciding

Quote:
Originally Posted by Dog

This must be a NW thing (TA, I have the impression you are from the NW). Anyway, DH and I are much the same. We will bundle up in the house just to keep the thermostat set low. This winter has been a struggle with the storms and snow. We keep telling each other to live large and just heat the house!
I don't know what it is about keeping the thermostat down. We do it also (although not to the degree some of you do). I have been wearing socks to bed lately. We can afford to turn up the heat but...
__________________
Every man is, or hopes to be, an Idler. -- Samuel Johnson
donheff is offline   Reply With Quote
Re: Accumulation or Withdrawal Phase - Still Deciding
Old 01-19-2007, 07:00 PM   #10
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,107
Re: Accumulation or Withdrawal Phase - Still Deciding

Quote:
Originally Posted by TromboneAl
Note that it's plenty warm in the living room once the fire has been going for an hour or two. I do most of my web surfing in front of the fire (as now), so we're not depriving ourselves that much. It's just that first half-hour in the morning.
So Al, you'e what, about 52? Got 35 or so years left? This half-hour of cold you're experiencing is for about 5 months of the year?

35 years x .5 hour x 5 months x 30 days/month = 2,625 hours of uncomfortable cold.

Tell me again what you're saving it for?

__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Re: Accumulation or Withdrawal Phase - Still Deciding
Old 01-19-2007, 07:01 PM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
 
Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 5,881
Re: Accumulation or Withdrawal Phase - Still Deciding

Quote:
We can afford to turn up the heat but...
Exactly....If you are asleep, that it the best time to LBYM. Works well with AC also.
__________________
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is offline   Reply With Quote
Re: Accumulation or Withdrawal Phase - Still Deciding
Old 01-19-2007, 07:05 PM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
TromboneAl's Avatar
 
Join Date: Jun 2006
Posts: 11,197
Re: Accumulation or Withdrawal Phase - Still Deciding

Quote:
Tell me again what you're saving it for?
__________________
Al
TromboneAl is offline   Reply With Quote
Re: Accumulation or Withdrawal Phase - Still Deciding
Old 01-19-2007, 07:11 PM   #13
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,107
Re: Accumulation or Withdrawal Phase - Still Deciding

Quote:
Originally Posted by TromboneAl
OK. But I suspect you're gonna have to suffer for longer than a half hour per day to be able to afford that baby!

__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Re: Accumulation or Withdrawal Phase - Still Deciding
Old 01-19-2007, 07:13 PM   #14
Recycles dryer sheets
Elderdude's Avatar
 
Join Date: Jun 2005
Location: Sacramento, Calif
Posts: 210
Re: Accumulation or Withdrawal Phase - Still Deciding

Al,
To hell with the expense, give the canary another seed!
__________________
Elderdude is offline   Reply With Quote
Re: Accumulation or Withdrawal Phase - Still Deciding
Old 01-19-2007, 07:13 PM   #15
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
TromboneAl's Avatar
 
Join Date: Jun 2006
Posts: 11,197
Re: Accumulation or Withdrawal Phase - Still Deciding

Quote:
you're gonna have to suffer for longer than a half hour per day to be able to afford that baby!
I wash baggies, too.
__________________
Al
TromboneAl is offline   Reply With Quote
Re: Accumulation or Withdrawal Phase - Still Deciding
Old 01-19-2007, 07:29 PM   #16
Moderator Emeritus
Khan's Avatar
 
Join Date: Aug 2006
Location: Pine Island, Florida
Posts: 6,868
Send a message via AIM to Khan
Re: Accumulation or Withdrawal Phase - Still Deciding

Quote:
Originally Posted by TromboneAl
I wash baggies, too.
As do I.

I also use washing machine rinse water to water outdoor plants during a drought.
__________________
"Knowin' no one nowhere's gonna miss us when we're gone..."
Khan is offline   Reply With Quote
Re: Accumulation or Withdrawal Phase - Still Deciding
Old 01-19-2007, 07:41 PM   #17
Thinks s/he gets paid by the post
 
Join Date: Jul 2003
Location: Pasadena CA
Posts: 2,695
Re: Accumulation or Withdrawal Phase - Still Deciding

I have a situation with some of the same elements. Wife retired June 06 and I may follow very soon (March to Nov 07 dependent of buyout offer). One thing that I have to face is youngest son (only child left at home) is a senior in HS and we expect he will be off to college in the fall, probably a state school so its pension+deferred comp withdrawals--college costs=

Overall it should work out but college costs are not well defined and I willn't feel like I am on a retirement withdrawal plan until at least college is finished.
__________________
T.S. Eliot:
Old men ought to be explorers
yakers is offline   Reply With Quote
Re: Accumulation or Withdrawal Phase - Still Deciding
Old 01-20-2007, 07:55 PM   #18
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
TromboneAl's Avatar
 
Join Date: Jun 2006
Posts: 11,197
Re: Accumulation or Withdrawal Phase - Still Deciding

Yes, the "college not yet done" thing has been important in my thinking. However, now I'm reasonably confident that I know the maximum that will remain on the college bill. That is, two more years of the same amount I paid this year (financial aid is expected to increase to cover tuition increases).
__________________

__________________
Al
TromboneAl is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Do you agree with Bengen's "Layer Cake" withdrawal rate MikeK FIRE and Money 23 12-16-2006 11:50 AM
Withdrawal rates - theory vs practice Roger_R FIRE and Money 56 01-17-2005 07:45 AM
"Is the Safe Withdrawal Rate TOO Safe?" Nords FIRE and Money 13 10-20-2004 11:36 AM
Accumulation phase and rebalancing Cal FIRE and Money 5 10-13-2004 01:33 PM
Wealth accumulation phase rate of return newellcr Young Dreamers 16 09-02-2003 08:58 AM

 

 
All times are GMT -6. The time now is 07:17 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.