|
|
11-05-2012, 08:21 PM
|
#161
|
Thinks s/he gets paid by the post
Join Date: Feb 2006
Posts: 4,872
|
Quote:
Originally Posted by rbmrtn
Maybe he means not spending down the assets but living off dividends/interest ?
|
No I mean to live off pension, SS from US and UK and rental income. There will be a time between ER and taking SS where I will have to spend some dividends, but once SS starts all my expenses will be covered without needing to spend anything from my portfolio, all the income from my portfolio will be reinvested.....so I'll actually have a negative WR.
__________________
“So we beat on, boats against the current, borne back ceaselessly into the past.”
Current AA: 75% Equity Funds / 15% Bonds / 5% Stable Value /2% Cash / 3% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
|
|
|
|
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!
|
11-05-2012, 08:34 PM
|
#162
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2006
Posts: 11,401
|
Quote:
Originally Posted by nun
No I mean to live off pension, SS from US and UK and rental income. There will be a time between ER and taking SS where I will have to spend some dividends, but once SS starts all my expenses will be covered without needing to spend anything from my portfolio, all the income from my portfolio will be reinvested.....so I'll actually have a negative WR.
|
Nice!
|
|
|
11-05-2012, 09:03 PM
|
#163
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,263
|
Quote:
Originally Posted by nun
No I mean to live off pension, SS from US and UK and rental income. There will be a time between ER and taking SS where I will have to spend some dividends, but once SS starts all my expenses will be covered without needing to spend anything from my portfolio, all the income from my portfolio will be reinvested.....so I'll actually have a negative WR.
|
Would you like to adopt a 56 year old? I want to be your heir.
|
|
|
11-06-2012, 05:31 AM
|
#164
|
Thinks s/he gets paid by the post
Join Date: Feb 2006
Posts: 4,872
|
Quote:
Originally Posted by pb4uski
Would you like to adopt a 56 year old? I want to be your heir.
|
Sure..... seriously the only reason I can make it work is I'm single and frugal. In today's dollars my SS, pension and rental income add up to $40k a year. As I have no mortgage and a good health plan I can live comfortably on that. I hope to leave my heirs some money, but who knows, I might have an end of life crisis and buy a Porsche in my 80s.
__________________
“So we beat on, boats against the current, borne back ceaselessly into the past.”
Current AA: 75% Equity Funds / 15% Bonds / 5% Stable Value /2% Cash / 3% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
|
|
|
11-06-2012, 06:03 AM
|
#165
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,263
|
Or splurge a bit more now on experiences and things that you enjoy, mke life more convenient and bring you joy. You can't take it with you so you might as well enjoy the fruits of your labor (prudently, of course).
|
|
|
11-06-2012, 06:19 AM
|
#166
|
Thinks s/he gets paid by the post
Join Date: Feb 2006
Posts: 4,872
|
Quote:
Originally Posted by pb4uski
Or splurge a bit more now on experiences and things that you enjoy, mke life more convenient and bring you joy. You can't take it with you so you might as well enjoy the fruits of your labor (prudently, of course).
|
I appreciate the advice, but I've got room for the fun stuff, plenty for theatre tickets, weekend beers and vacations. My ER retirement decision point has become being able to finance my spending from after tax money up to SS age and keeping my portfolio growing
__________________
“So we beat on, boats against the current, borne back ceaselessly into the past.”
Current AA: 75% Equity Funds / 15% Bonds / 5% Stable Value /2% Cash / 3% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
|
|
|
11-06-2012, 07:31 AM
|
#167
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,201
|
Quote:
Originally Posted by rbmrtn
Maybe he means not spending down the assets but living off dividends/interest?
Quote:
Originally Posted by nun
No I mean to live off pension, SS from US and UK and rental income. There will be a time between ER and taking SS where I will have to spend some dividends, but once SS starts all my expenses will be covered without needing to spend anything from my portfolio, all the income from my portfolio will be reinvested.....so I'll actually have a negative WR.
|
|
So you have more than enough floor income to meet your spending needs and you're planning on a (large) residual from your investment portfolio, which is great.
That's something very different than stating the only safe withdrawal rate for stocks and bonds is 0%. Whatever the safe withdrawal rate from a portfolio is, it's not 0% (actually an oxymoron), no matter what future real returns may be.
Quote:
Originally Posted by nun
IMHO a SWR for stocks and bond funds is 0%
|
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
|
|
|
11-06-2012, 11:53 AM
|
#168
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 14,183
|
Though some of us don't have the luxury of never touching our portfolio, so we have to roll the dice carefully study the data, then decide on a SWR we can live with...
__________________
Have Funds, Will Retire
...not doing anything of true substance...
|
|
|
11-06-2012, 04:03 PM
|
#169
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2005
Posts: 6,115
|
Quote:
Originally Posted by Midpack
So you have more than enough floor income to meet your spending needs and you're planning on a (large) residual from your investment portfolio, which is great.
That's something very different than stating the only safe withdrawal rate for stocks and bonds is 0%. Whatever the safe withdrawal rate from a portfolio is, it's not 0% (actually an oxymoron), no matter what future real returns may be.
|
we are basically backing into our allocations based on the amount of income we want with the minimal amount of risk.
when we retire at 62 my wife will file, she has a small pension, we have rental income until we finish selling off all our holdings .
i figured needing about 2.5% -3% prior to me taking ss at 66 or 70 and about 2% after.
that will give us quite a few conservative options as opposed to drawing alot more income but having to go to a much larger allocation to equities.
our first reaction was to go 50/50 or so and base a lifestyle around 4% swr or so.
we have since cut that down and will base our lifestyle around a 2% withdrawal.
|
|
|
11-06-2012, 05:10 PM
|
#170
|
Thinks s/he gets paid by the post
Join Date: Feb 2006
Posts: 4,872
|
Quote:
Originally Posted by HFWR
Though some of us don't have the luxury of never touching our portfolio, so we have to roll the dice carefully study the data, then decide on a SWR we can live with...
|
Early on in my planning I decided to set up stable income sources for retirement. So really it's not a luxury it's just how I've prioritized my investing. 27 years ago I took the opportunity to continue to pay into the UK SS system so that at 66 I'll have both US and UK SS. I also bought a 2 family home so that I can get rental income. Finally I'll get a $5k annual pension at 62 and from 1987 to 1991 I contributed to a TIAA annuity that will produce another $5k when Im 65. I'll have to spend taxable income between ER and 65 and I'll be doing IRA to ROTH rollovers, but I'm not planning on spending any of my tax deferred money. Of course if my two SS checks get reduced my plan will change, but I should be able to handle that.
__________________
“So we beat on, boats against the current, borne back ceaselessly into the past.”
Current AA: 75% Equity Funds / 15% Bonds / 5% Stable Value /2% Cash / 3% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
|
|
|
11-07-2012, 08:51 AM
|
#171
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 14,183
|
Quote:
Originally Posted by nun
Early on in my planning I decided to set up stable income sources for retirement. So really it's not a luxury it's just how I've prioritized my investing. 27 years ago I took the opportunity to continue to pay into the UK SS system so that at 66 I'll have both US and UK SS. I also bought a 2 family home so that I can get rental income. Finally I'll get a $5k annual pension at 62 and from 1987 to 1991 I contributed to a TIAA annuity that will produce another $5k when Im 65. I'll have to spend taxable income between ER and 65 and I'll be doing IRA to ROTH rollovers, but I'm not planning on spending any of my tax deferred money. Of course if my two SS checks get reduced my plan will change, but I should be able to handle that.
|
I involuntarily paid into SS, and will likely get the full amount I'm "entitled" to get. My pension from megacorp was involuntarily "frozen" years ago, though I will qualify for a small one from my current employer. I threw as much money as possible at tax-deferred savings, and benefited from the matches available. Have NO desire to be a landlord...
I suppose I could have quit my j*b, where I had significant seniority and other longevity benefits, and found a j*ob with a pension.
So, it didn't work out that I'll get a lot of "pension" benefits, but that was beneficial to me in other ways, vis a vis a higher salary and higher match. In reality, I've created my own pension, and I'm managing it, and pocketing the expense and management fees.
How is buying an annuity is not "investing", since you're counting on TIAA to invest for you, so they can continue paying your benefit? You still have a SWR, based on the annuity payment vs. the money you traded for that monthly benefit.
Don't really care, buy why would you shortchange yourself by investing a lot of money you never intend to spend?
__________________
Have Funds, Will Retire
...not doing anything of true substance...
|
|
|
11-07-2012, 09:10 AM
|
#172
|
Thinks s/he gets paid by the post
Join Date: Feb 2006
Posts: 4,872
|
Quote:
Originally Posted by HFWR
So, it didn't work out that I'll get a lot of "pension" benefits, but that was beneficial to me in other ways, vis a vis a higher salary and higher match. In reality, I've created my own pension, and I'm managing it, and pocketing the expense and management fees.
How is buying an annuity is not "investing", since you're counting on TIAA to invest for you, so they can continue paying your benefit? You still have a SWR, based on the annuity payment vs. the money you traded for that monthly benefit.
Don't really care, buy why would you shortchange yourself by investing a lot of money you never intend to spend?
|
Sure the TIAA is invested, but I'm one step removed from the market and it's lowest annual return over the past 27 years has been 3%. My main point is that I have diversified my retirement income sources throughout my working life so that I can support my retirement without the need to spend my IRA, 403b and 457 etc. I put money into taxable and tax deferred index funds, but I also bought TIAA-Traditional early on, paid off my mortgage so that my 2 family pays net income and made voluntary contributions to the UK SS system when many would have just spent that money.
I invested money in 401k, 403b, ROTH, 457etc to get the tax advantages and to have a portfolio I can use in case of emergencies......or for that Porsche. I have a very nice lifestyle, I described it as frugal because I buy the compact car rather than the big sedan and will bake an apple pie rather than buy one. Saving or investing money rather than spending it isn't "short-changing" yourself when you have all you want or need. The portfolio is insurance and the taxable part is a bridge to when the SS checks start and for that I'll be using a 4% WR
__________________
“So we beat on, boats against the current, borne back ceaselessly into the past.”
Current AA: 75% Equity Funds / 15% Bonds / 5% Stable Value /2% Cash / 3% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
|
|
|
11-07-2012, 07:32 PM
|
#173
|
Thinks s/he gets paid by the post
Join Date: Jul 2011
Location: The Bay Area
Posts: 2,736
|
Quote:
Originally Posted by HFWR
Don't really care, buy why would you shortchange yourself by investing a lot of money you never intend to spend?
|
Quote:
Originally Posted by nun
Sure the TIAA is invested, but I'm one step removed from the market and it's lowest annual return over the past 27 years has been 3%. My main point is that I have diversified my retirement income sources throughout my working life so that I can support my retirement without the need to spend my IRA, 403b and 457 etc. I put money into taxable and tax deferred index funds, but I also bought TIAA-Traditional early on, paid off my mortgage so that my 2 family pays net income and made voluntary contributions to the UK SS system when many would have just spent that money.
I invested money in 401k, 403b, ROTH, 457etc to get the tax advantages and to have a portfolio I can use in case of emergencies......or for that Porsche. I have a very nice lifestyle, I described it as frugal because I buy the compact car rather than the big sedan and will bake an apple pie rather than buy one. Saving or investing money rather than spending it isn't "short-changing" yourself when you have all you want or need. The portfolio is insurance and the taxable part is a bridge to when the SS checks start and for that I'll be using a 4% WR
|
You're in an excellent position. But, I think the question is 'Why not retire now?"
__________________
You may be whatever you resolve to be.
100% x 10% > 10% x 100%
Small pensions & SS cover essentials
|
|
|
11-07-2012, 09:29 PM
|
#174
|
Thinks s/he gets paid by the post
Join Date: Feb 2006
Posts: 4,872
|
Quote:
Originally Posted by Huston55
You're in an excellent position. But, I think the question is 'Why not retire now?"
|
Main reason is health care....I'm 51 and at 55 I can retire and keep my health insurance and pay the same premium as when I was w*rking. I also want a bit more in after tax savings to bridge the 55 to 65 gap. Plus I quite like my w*rk.
__________________
“So we beat on, boats against the current, borne back ceaselessly into the past.”
Current AA: 75% Equity Funds / 15% Bonds / 5% Stable Value /2% Cash / 3% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
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
|
|
|