Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Old 06-03-2016, 11:45 AM   #61
Dryer sheet aficionado
INTJ10's Avatar
Join Date: Feb 2011
Location: Tampa Bay Area
Posts: 46
It makes a difference for our retirement date decision(s). Without SS, we are at a 4.4% WR and with it we are 2.8%. So I am in a bit of a quandary about it.

INTJ10 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 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!

Old 06-03-2016, 12:22 PM   #62
Recycles dryer sheets
Join Date: Apr 2005
Posts: 58
Actually, the Social Security Administration is pre-spending SS. According to current estimates the trust fund runs out in 18 years. It was 19 years before the last budget raided retirement benefits to pay for SSDI. After that, only 79% of benefits can be paid.

This could be earlier, if say, a bunch of 30 year olds decide to retire early.

adrift is offline   Reply With Quote
Old 06-03-2016, 04:36 PM   #63
Thinks s/he gets paid by the post
Join Date: Oct 2006
Posts: 3,635
If "pre-spending SS" is defined as withdrawing more from an IRA today because we know we will eventually get SS,

then, sure, that's what we're doing.
Independent is offline   Reply With Quote
Old 06-03-2016, 04:44 PM   #64
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 13,189
Originally Posted by marko View Post
That is exactly how I understand it and what I meant be 'pre-spending' SS.

My original question was whether people spend less until SS arrives and then consider it a raise that brings them up to their calculated spending level when it does arrive.
Still not clear but our retirement plan spending does not change for anything other than inflation. Current WR (2017 withdrawals/proj Dec 2016 balance) is 4.3%. WR in first full year of SS is 2.6% (2026 withdrawals/proj Dec 2016 Balance)

As a practical matter once those income streams are online we might well splurge more but no "plan" to consider it a raise. We should probably be spending more now.
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
pb4uski is online now   Reply With Quote
Anyone "Pre-spending" SS?
Old 06-03-2016, 04:45 PM   #65
Full time employment: Posting here.
Join Date: Jan 2007
Location: Thousand Oaks
Posts: 774
Anyone "Pre-spending" SS?

Originally Posted by RunningBum View Post
It's been quite awhile since I've used Firecalc so I can't say for sure but I didn't think Firecalc gives you a SWR. From what I see, you give it your portfolio and SS with planned begin date, along with your expenses, and Firecalc tells you if that plan works based on history. If you go take 4 extra years out of your portfolio to make up for the shortfall before you start collecting SS, you are no longer following the plan that you entered into Firecalc.

If you use a tool like I-orp, it would have you taking more out of your portfolio early, then reducing that when your SS kicks in.

Someone more familiar with those tools can correct me if I'm wrong.

Like you say, it's only 4 years. But if you were doing this for 20 years, I think you could see clearly this is wrong and puts your portfolio at risk. For 4 years, or even 1 year, is still wrong, but just not nearly as risky as 20 years.

In the "investigate" page of firecalc, there is a "Given a success rate, determine spending level for a set portfolio" this takes into account the data you enter regarding your SS benefits

When I run in this mode and don't include SS the difference in what it says my speeding level is is about 14000 a year less which is less than my as benefits at FRA so it is accounting for SS input in a manner that one would expect

Sent from my iPad using Early Retirement Forum

mh is offline   Reply With Quote

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
2008 Actual Spending and 2009 Budgeted Spending dex FIRE and Money 122 03-17-2009 02:49 PM
Pre-paying Mortgage Perspective after the "Crash" stephenandrew FIRE and Money 54 12-17-2008 06:02 AM
The "80% of pre-retirement income" sound bite Nords FIRE and Money 1 02-05-2008 08:43 PM
Pre-paid spending card mickeyd FIRE and Money 1 12-27-2006 06:41 PM
Finally, an end to the "80% of pre-retirement income" thumbrule Nords FIRE and Money 15 10-02-2006 12:20 PM


All times are GMT -6. The time now is 01:47 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.