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Old 12-14-2015, 09:43 AM   #21
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Retiring at 56/57. Variable spending rate is planned to be 4% of portfolio assets each year, no pensions or rental property. Variable because DW is likely to be very long lived. Also, our fixed "needed" spending for a reasonably comfortable life without traveling would only require 1.5% of the initial portfolio per year. Thus, a ton of fat/discretionary spending that can be cut if everything hits the fan.
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Old 12-14-2015, 09:45 AM   #22
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for those that did their er at age 60 or before, what was your total asset value? (excluding your home)
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Old 12-14-2015, 09:51 AM   #23
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This is how he prevents me from suing for everything he's worth. Can't pry this info out!
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Old 12-14-2015, 09:53 AM   #24
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My asset value at ER (as the OP has defined it) was between $1 million and $5 million. Taken in isolation, it's not a meaningful piece of information. Please tell me how it helps you.
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Old 12-14-2015, 09:54 AM   #25
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OP - Looking at your previous posts (specifically this one.) you have a planned WR of 2.4%. I'd say you're good to go.
(132k/year budget divided by 5.4Million assets.)

And you *did* go first... just not in this thread.

If you want an idea of folks net worth... the search function works well... Every few years someone posts a poll. (Which tend to get more responses since it's anonymous.)
Here's a fairly recent one... you'll see you are way at the top of the range.
Poll:What's your number?
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Old 12-14-2015, 09:58 AM   #26
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The intention was not to pry on personal information. I just assumed everything posted here is anonymous and no one knows each other...my bad. I just lack the confidence right now on pulling the trigger on the ER at age 60.
Invested assets are 5mil, monthly expenses 10.5k

Many thanks to all that have replied


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Old 12-14-2015, 10:00 AM   #27
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Thanks rodi very helpful


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Old 12-14-2015, 10:09 AM   #28
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$5,000,000/$126,000=39.7 years. You can very conservatively make it to 99.7 years old.
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Old 12-14-2015, 10:11 AM   #29
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I just lack the confidence right now on pulling the trigger on the ER at age 60.
Invested assets are 5mil, monthly expenses 10.5k
So what does FIRECalc tell you?
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Old 12-14-2015, 10:14 AM   #30
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The intention was not to pry on personal information. I just assumed everything posted here is anonymous and no one knows each other...my bad. I just lack the confidence right now on pulling the trigger on the ER at age 60.
Invested assets are 5mil, monthly expenses 10.5k

Many thanks to all that have replied...
You probably know all this, but your WR is only 2.5% which absent a black swan event, should be plenty. If a black swan happens then you'll have plenty of company in your misery.

I assume that there is some flexibility to tighten your belt from $10.5k/month if a black swan occurred. Plus I assume that you have SS on top of the $5 million.

$10.5k/month for 40 years is ~$5 million so even if your portfolio only returned 0% real you would be fine.

And while this site is anonymous after 10,000 posts (or after 30,000 posts in the case of W2R or 36,000 posts in the case of REWahoo) many of us have disclosed enough tidbits about ourselves that someone could figure out who we are in real life if they really wanted to.
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Old 12-14-2015, 10:17 AM   #31
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I just lack the confidence right now on pulling the trigger on the ER at age 60.
Invested assets are 5mil, monthly expenses 10.5k
FWIW, your expenses are well under the 4% withdrawal rate that's often considered to be "sustainable". (I'd guess many here are more comfortable withdrawing less than that 4%) Of course, this is the very roughest of gauges.
You are smart to check around, play with some numbers, read some of the old threads here (and participate in new ones) until yiou get comfortable. Nothing can take the place of a hard look at your present and future expenses (incl biggies like health care) and potential returns on your investments and other income sources (SS, pensions, etc) and "what if-ing" the probable future until you get comfortable. There are people here very happily retired on 1/4th of what you've got, but they aren't used to spending $10K per month.
If you haven't done it yet, play around with FIRECalc.
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Old 12-14-2015, 10:18 AM   #32
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My point is that using "assets" apart from liabilities isn't a particularly good index of retirement readiness - and in any case no better than net worth.
If you pay off your house, you have reduced an expense which affects the amount of assets needed to generate your income. This is how paying your mortgage made a phantom asset for generating income (it reduced an expense). Now if you sell the house or turn in into a rental, then it could generate income
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Old 12-14-2015, 10:19 AM   #33
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+1. It's like asking someone how much they weigh or asking a stranger how old they are!
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Old 12-14-2015, 10:23 AM   #34
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And while this site is anonymous after 10,000 posts (or after 30,000 posts in the case of W2R or 36,000 posts in the case of REWahoo) many of us have disclosed enough tidbits about ourselves that someone could figure out who we are in real life if they really wanted to.
With 36,000 posts you think I have a real life?
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Old 12-14-2015, 10:24 AM   #35
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Not sure, I was thinking that perhaps you have a real life AND are really old.

But that can't be because W2R has almost as many posts and isn't old at all.
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Old 12-14-2015, 10:33 AM   #36
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Not sure, I was thinking that perhaps you have a real life AND are really old.

But that can't be because W2R has almost as many posts and isn't old at all.
Aw!!! You get several brownie points for saying that. Sometimes I feel older than Methuselah.

(67 years, +6 months, +6 days - - - how could I possibly be this old? I am still 23 at heart.)

I have said a lot about myself over the years, but I am guessing that it would take a regular forum reader to put various items of information together and figure out my net worth minus house at retirement within just a few dollars.

For those who don't need the exact amount, I'll give you all a big clue, though - - more than $99,000 and less than $99,999,999.
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Old 12-14-2015, 10:52 AM   #37
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Aw!!! You get several brownie points for saying that. ...
I'm certain that sometime in the near future I will misbehave be misinterpreted in some way that makes those brownie points evaporate into thin air... it is just a matter of time.
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Old 12-15-2015, 05:45 PM   #38
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Home of $500k is paid off and is 20% of NW. DW has pension and SS that equals 40% of our yearly expenses. In six years I hit FRA and then we'll have 80% of our yearly expenses covered by pension/SS. At that time we'll be around a 1.5% WR.
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Old 12-15-2015, 05:54 PM   #39
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House value is typically excluded because you can't eat your house. You've probably heard of the term "house rich, cash poor" before, right?

IOW, unless you plan to sell your house and rent, or downsize and add part of the proceeds from the sale of a larger house to your retirement nestegg, then that house doesn't provide any cash flow to pay for groceries, health care etc.

When you paid your mortgage then you new worth did not change... your assets went down and liabilities went down by the same amount but NW is less relevant to being retired than retirement assets.

IOW, using an extreme example, if someone has a $500k house and $2 million in retirement assets they are better positioned to retire than someone with a $2 million house and $500k in retirement assets yet they both have a $2.5 million net worth.
I wouldn't completely discount home equity. Late in life one can liquidate it, or borrow against it. You need to recognize that it isn't immediately liquidable (probably not really a word), but one can get cash out of it at some point.
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Old 12-15-2015, 07:35 PM   #40
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I agree in theory. I think of our home equity as a Plan C level item in that if things got real bad then we could downsize and generate some cash... but it isn't part of the plan.
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