 |
Adjusting Safe Withdrawal
05-10-2013, 06:10 PM
|
#1
|
|
Recycles dryer sheets
Join Date: Nov 2009
Posts: 64
|
Adjusting Safe Withdrawal
DW and I have about 15% of our retirement assets in a second home for DD and DGD. Home will be sold by 2020, increasing available retirement funds.
Full retirement starts this year - ages 64 and 62. No mortgages.
How should I calculate SWR now and after sale of second home?
|
|
|
 |
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!
|
|
05-10-2013, 06:53 PM
|
#2
|
|
Thinks s/he gets paid by the post
Join Date: Mar 2013
Location: Southern California
Posts: 3,999
|
Firecalc has an option under "portfolio changes" to reflect a one time lump sum addition to your portfolio. You can enter the number with a 2020 date and see how it affects your calculations. Ideally if you can ignore the potential sale and live off your remaining investable assets, the home sale will be gravy. If not, you will have to give it your best guess as to what the home might be worth in 2020.
|
|
|
|
|
05-10-2013, 07:57 PM
|
#3
|
|
Thinks s/he gets paid by the post
Join Date: Oct 2006
Posts: 4,629
|
The phrase "Safe Withdrawal Rate" is kind of misleading. Some people think it means a level percent of current assets that you withdraw every year. It's more like a "Safe Withdrawal Dollar Amount", which happens to be expressed in the first year as a percent of your beginning portfolio. Firecalc actually provides something that could be called "Safe total spending dollar amount".
That may be confusing. If so, just do what Ready said.
|
|
|
|
|
05-10-2013, 08:10 PM
|
#4
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jul 2006
Posts: 11,401
|
Any asset which can be liquidated is a part of your investment portfolio and can be included now at its present value if you are willing to sell it now, or in 2020 at its estimated future value.
|
|
|
|
|
05-11-2013, 03:55 AM
|
#5
|
|
Thinks s/he gets paid by the post
Join Date: Mar 2009
Posts: 2,985
|
I treat the eventual sale of our second home as an emergency fund for sometime in the future. It will have no bearing on our SW rate from liquid investments in early retirement.
Of course that may just be another way for me to rationalize staying on the job a little longer.
__________________
Took SS at 62 and hope I live long enough to regret the decision.
|
|
|
|
|
05-11-2013, 06:59 AM
|
#6
|
|
Thinks s/he gets paid by the post
Join Date: Nov 2012
Location: Madeira Beach Fl
Posts: 1,403
|
 Quote:
Originally Posted by Ready
Firecalc has an option under "portfolio changes" to reflect a one time lump sum addition to your portfolio. You can enter the number with a 2020 date and see how it affects your calculations. Ideally if you can ignore the potential sale and live off your remaining investable assets, the home sale will be gravy. If not, you will have to give it your best guess as to what the home might be worth in 2020.
|
+2
__________________
_______________________________________________
"A man is a success if he gets up in the morning and goes to bed at night and in between does what he wants to do" --Bob Dylan.
|
|
|
|
|
05-11-2013, 01:58 PM
|
#7
|
|
Recycles dryer sheets
Join Date: Nov 2009
Posts: 64
|
Thanks.
|
|
|
|
|
05-11-2013, 03:18 PM
|
#8
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Mar 2005
Location: Chicago
Posts: 13,186
|
Quote:
Originally Posted by foxfirev5
Of course that may just be another way for me to rationalize staying on the job.
|
Why yes, yes it is! A clever twist though.........
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
|
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|
Linear Mode
