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View Poll Results: For retirees only. How are you living?
At our means 12 18.75%
Below our means 44 68.75%
Above our means! 3 4.69%
This poll is no good. I am creating my own poll. 5 7.81%
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Re: At, Below, or Above your means
Old 03-29-2007, 04:58 PM   #21
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Re: At, Below, or Above your means

Quote:
Originally Posted by SecondCor521
I am interested to see how my kids turn out.
Well, my son is cheaper more frugal than I am. He patches his clothes with duct tape. Whenever he comes home from college DW gets rid of a few.
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Re: At, Below, or Above your means
Old 03-30-2007, 09:57 AM   #22
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Re: At, Below, or Above your means

Quote:
Originally Posted by kumquat
While accumulating, I guess, if total spending + savings < income, you are LYBM.

What is an ER's means? 4% of portfoio? 5? Higher? Lower? What if you plan to spend 7% of portfoolio for x years and then cut back?

While I'm below today, when I ER shortly what will I be?
We take actual expenses and extrapolate at inflation (10 year average) then we plan on portfolio growth at 5% above inflation. We consider actual portfolio growth above the target to be savings (or buffer for a bad year). We do not plan to cut back later on, although we anticipate that is likely. One thing that will keep the rate up is our intention to take more cruises when we become less mobile.

Currently our withdrawal rate is 3.8% and we are targeting to get to 3.5% because we plan to be retired for 35 years.
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Re: At, Below, or Above your means
Old 03-30-2007, 10:16 AM   #23
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Re: At, Below, or Above your means

Quote:
Originally Posted by kumquat
While accumulating, I guess, if total spending + savings < income, you are LYBM.

What is an ER's means? 4% of portfoio? 5? Higher? Lower? What if you plan to spend 7% of portfoolio for x years and then cut back?

While I'm below today, when I ER shortly what will I be?
I have a slightly different view of this. You don't specify how MUCH savings. I don't know that I have an exact answer...but to me anyone who is saving 1% and fits your equation above is not living within their means. You must save more than 1% to live AFTER you retire. But once you determine the number that's right for your situation...then I agree with you.

On your second point, all the research I've read says an INITIAL w/d rate of 4% or so will virtually guarantee you'll never run out of money. However, I agree that I will tend to spend less in the later stages of life (after adjusting for inflation), so I'm thinking about a 7% rate the first 5 years or so, then ratchet that back as needed.

The other strategy is one I'll call "adaptive" living. You start with a base amount you will w/d, then adjust it the next year depending on how your portfolio does. This will only work if you have some non-essentials in your budget...but we definitely have that. So if the market is down one year, we take a cheaper vacation.

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Re: At, Below, or Above your means
Old 03-30-2007, 10:50 AM   #24
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Re: At, Below, or Above your means

Do we actually have 54 retirees (or couples) on this board? Or are non-retirees also voting?

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Re: At, Below, or Above your means
Old 03-30-2007, 11:00 AM   #25
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Re: At, Below, or Above your means

Quote:
Originally Posted by Sam
Do we actually have 54 retirees (or couples) on this board? Or are non-retirees also voting?
Hmmmm. Over 3,400 registered forum members. 900 have posted 10 or more times. I think it's a safe bet to say we have 54 retirees on the board.

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Re: At, Below, or Above your means
Old 03-30-2007, 11:10 AM   #26
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Re: At, Below, or Above your means

OK, point taken.
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Re: At, Below, or Above your means
Old 03-30-2007, 11:12 AM   #27
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Re: At, Below, or Above your means

I'm not retired, I didn't vote, but it is an interesting thread. I'm very conservative when planning and expect to be LBYM after retirement if the definition is that pensions + 4% SWR = your "income"/"means"
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Re: At, Below, or Above your means
Old 03-30-2007, 11:23 AM   #28
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Re: At, Below, or Above your means

For those who voted "Below our means", please participate in a follow up poll.
http://early-retirement.org/forums/i...?topic=13171.0
Thanks
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