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Old 04-23-2012, 09:02 PM   #21
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On the subject of large infrequent expenses. We deal with these things such as new cars, kitchen/bath remodels, roofs, etc by using a long (usually3-5 year) planning horizon. This gives me the opportunity to spread these items over the longer period but still plan for them. Still put another $10k or so per house for such things as art furniture,etc. This results in yearly planned expenses that vary somewhat over time but average out over the longer term. Seems to work ok.
We do it pretty much the same way
I have these expenses built into our monthly budget.
I have buckets for vacation, car, taxes, maint. etc.
been doing this for over 20yrs. and it works great for us.
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Old 04-24-2012, 05:22 AM   #22
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IMO, you are not. Trust your instinct.
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Am I thinking about this wrong ?
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Old 04-27-2012, 11:35 AM   #23
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Thanks for all the great feedback and confirmation that my approach is reasonable.

Still waiting for the FA to come back with the revised analysis - have a feeling he knows I've already mentally blown him off for another 2 years. The fees are ridiculous.

Just received 3 of the recommended books from this list and am getting ready to dig into the first.

Thanks again
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Old 05-03-2012, 03:00 PM   #24
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Update - the FA redid the analysis the way I wanted it (held 400k in cash aside / outside of portfolio to fund my "one time expenses" and bucket list vacations). Monte Carlo results are 88% of success to age 92.

We've included no additional savings and assumed immediate retirement. I'm hoping that my "one more year" until Aug 2013 gets me where I'm more comfortable.
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"For the time being no discipline brings joy, but seems grievous and painful; but afterwards it yields a peaceable fruit of righteousness to those who have been trained by it." ~
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Old 05-03-2012, 03:48 PM   #25
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Update - the FA redid the analysis the way I wanted it (held 400k in cash aside / outside of portfolio to fund my "one time expenses" and bucket list vacations). Monte Carlo results are 88% of success to age 92.

We've included no additional savings and assumed immediate retirement. I'm hoping that my "one more year" until Aug 2013 gets me where I'm more comfortable.
Sounds pretty good to me. Not sure how much more comfortable you can get - the difference between 90% and 100% may be more meaningful on paper than in real life. If that is your number, then best of luck and hope you make it.
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Old 05-03-2012, 05:20 PM   #26
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Actually I think I just found another error in their analysis which should drop probablility of success to 92 to something around 75 - 77%. If I didn't think they were 'just' sloppy then I'd swear they were doing it so they could get their hands on my 401k and cash defined benefit plan amounts.

Have asked them to update AGAIN - we'll see what they come up with.
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"For the time being no discipline brings joy, but seems grievous and painful; but afterwards it yields a peaceable fruit of righteousness to those who have been trained by it." ~
Hebrews 12:11

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Old 05-04-2012, 11:04 AM   #27
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Actually I think I just found another error in their analysis which should drop probablility of success to 92 to something around 75 - 77%. If I didn't think they were 'just' sloppy then I'd swear they were doing it so they could get their hands on my 401k and cash defined benefit plan amounts.

Have asked them to update AGAIN - we'll see what they come up with.
Makes doing it yourself look better and better.
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Old 05-04-2012, 11:28 AM   #28
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Makes doing it yourself look better and better.
Originally I was looking for "professional confirmation" of what I had done. But I find myself asking myself "these guys do this for a living ?". Makes me want to get my CFP and take their jobs from them !
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Hebrews 12:11

ER'd in June 2015 at age 52. Initial WR 3%. 50/40/10 (Equity/Bond/Short Term) AA.
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