All In One Retirement Checklist From Schwab

[Patrick]

See the article at this link:

http://www.schwabinsights.com/2006_11/managemoney.html

[Caroline]

Ninety-thousand dollars for a first year withdrawl? Geez Louise, would I be hosed if I needed that to live on.

(Other than that -- good info -- thanks for the link!)

[Patrick]

Quote:

Originally Posted by Caroline Ninety-thousand dollars for a first year withdrawl? Geez Louise, would I be hosed if I needed that to live on. (Other than that -- good info -- thanks for the link!)

I think he just picked that so that he would have a nice round number to multiply.

You're welcome - and my name's not Louise!

[youbet]

This comment from the Schwab site really made me think!

Share your retirement dreams with your spouse—you may be dreaming of fly-fishing right next to your retirement home in the mountains every morning while your significant other is thinking about a downtown, high-rise luxury condo.

Clearly, if this kind of issue is going to surface, you better have done your homework with a pre-nup and have an attorney lined up! BTW, our dream is to have both the wildnerness home and the urban condo. Just haven't figured the financing yet!

[donheff]

Quote:

Originally Posted by Caroline Ninety-thousand dollars for a first year withdrawl? Geez Louise, would I be hosed if I needed that to live on. (Other than that -- good info -- thanks for the link!)

It was $90K expenses, $50K withdrawal after accounting for SS and other income (pension?).

[New Thinking]

The danger in this message is the idea that a 4% SWR is necessary for everyone and thus you need 25X your income need in the form of savings..For many outside this board, this scares them away and is completely unnecessary. Many individuals who are scruggling to create $40,000 of income should not focus on $1 million but should focus on getting enough to buy a $40,000 SPIA and having an emergency fund on the side. Pooling mortality risk is the best way for many of the boomers. They will not have the luxury of leaving retirement assets to heirs or managing a Safe withdrawal strategy...There was little wrong with the pension for life strategy that our father's generation had.

[tryan]

Who's gett'n 25K from SS ... dual income lifer's (30 year employees)??

[brewer12345]

Quote:

Originally Posted by New Thinking The danger in this message is the idea that a 4% SWR is necessary for everyone and thus you need 25X your income need in the form of savings..For many outside this board, this scares them away and is completely unnecessary. Many individuals who are scruggling to create $40,000 of income should not focus on $1 million but should focus on getting enough to buy a $40,000 SPIA and having an emergency fund on the side. Pooling mortality risk is the best way for many of the boomers. They will not have the luxury of leaving retirement assets to heirs or managing a Safe withdrawal strategy...There was little wrong with the pension for life strategy that our father's generation had.

So how much is your typical SPIA commission?

[FinanceDude]

Quote:

Originally Posted by brewer12345 So how much is your typical SPIA commission?

The plot thickens............

[astromeria]

Quote:

Originally Posted by tryan Who's gett'n 25K from SS ... dual income lifer's (30 year employees)??

Just takes one well-paid lifer plus a low-to-middling or non-earning spouse (1.5 x 1 good-earner's SS benefit). DH and I together expect to receive ~$25k at age 62.

EDITs in bold.

[New Thinking]

Brewer - I don't sell SPIAs for commission. I can say that I am trying to make direct access to SPIAs WITHOUT PAYING ANY COMMISSION more easily available. Institutional pricing for those who don't want to seek advice...I think the public needs greater access to SPIAs without having to go through an advisor if they so desire.

Not everyone can manage a SWR, but people will need access to more SPIA choice without having to go through an intermediary as this creates a higher monthly benefit for (potentially) 30+ years.

[FinanceDude]

Quote:

Originally Posted by New Thinking Brewer - I don't sell SPIAs for commission. I can say that I am trying to make direct access to SPIAs WITHOUT PAYING ANY COMMISSION more easily available. Institutional pricing for those who don't want to seek advice...I think the public needs greater access to SPIAs without having to go through an advisor if they so desire. Not everyone can manage a SWR, but people will need access to more SPIA choice without having to go through an intermediary as this creates a higher monthly benefit for (potentially) 30+ years.

How are you going to do that? If it happens, the folks on here would be interested........

I suppose a life company could use a direct channel to do it, but with no salespeople to promote it, don't know how they get the benefit.

Unless you're trying to do it like they do things at places like BOA and Chase Private Bank, where clients have access to things like this, but the cost of entry is pretty high ($10 million and up)

[New Thinking]

I'll let you know how if/when we get closer.

[donheff]

Quote:

Originally Posted by tryan Who's gett'n 25K from SS ... dual income lifer's (30 year employees)??

Hunh? Don't all high income workers? I don't get any SS (Fed Civil Service). But I looked at DW's most recent statement and it says she will get $2,128/mth at age 66 and $2,852/mth at age 70. At 62 she wouldn't get $25K but Schwab probably can't conceive of anyone retiring at that tender age.

[Corporateburnout]

Quote:

Originally Posted by tryan Who's gett'n 25K from SS ... dual income lifer's (30 year employees)??

Lots of people. My statement says that I am qualified for a $1638 per month at 62 and $2100 at 66 with a spouse benefit of 50% of these amounts. Of course I have been paying the maximum into the system for the last 18 years.