At the 'end' do you plan on spending to zero or leave a legacy?

[gerntz]

We're living off dividends/interest + SS, charitably donating significantly imo, and living life as we want to w/o eating much into principle. Net, the dividend/interest producing assets are bound to be there at the end unless things drastically change. We're not interested in changing our life to eat into those assets at a faster rate.

[rodi]

Our plan A has us spending our investible assets - if we live long enough. But we have a pricy SoCal home that will either go to the kids (to be sold and proceeds divided) or be used for LTC.

Like all of this - flexibility and adaptation will guide us. But we don't feel obligated to leave a big nest egg to the kids.

[Walt34]

Quote:

Originally Posted by REWahoo None of the above. I have no target amount at the end, I simply plan (and hope) to not run out of money before running out of us, as the plan also includes DW.

That.

Absent the need for LTC some relatives will be pleasantly surprised but they won't be able to retire with it.

[Hermit]

Self insuring for LTC. I expect DD will drag me out of the mountains (kicking and screaming all the way) when the time comes so I will need to find a place to live down along the Front Range. I will have enough in pension and SS to live on once my SS kicks in. I should have enough for all possibilities, but I have no clue what that will be or what will be left.

If FIRECalc is close, maybe I will spend the last few days lighting cigars with 100 dollar bills. (Wait! I'm moving to Colorado! I could use those funny little cigarets rather than cigars! )

[robnplunder]

Quote:

Originally Posted by Hermit (Wait! I'm moving to Colorado! I could use those funny little cigarets rather than cigars! )

Let me sit next to you for a while when you do that.

[RetiredAndFree]

Quote:

Originally Posted by GrayHare The saver mentality is so ingrained it will be difficult to spend it down to zero.

+1

To my chagrin. We're working on it though!

[Mulligan]

Provided by pension stays solvent, my situation is inverse. The longer I live the better the chance my daughter receives an inheritance. If I was her, I would be hoping for the middling scenario.... I live long enough to accumulate plenty of assets to transfer to her, but not long enough to where she is too old to do anything with it.


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[BBQ-Nut]

I'm a bit surprised so many here 'hope' that the money doesn't run out.

I guess being an engineer, I over analyze, but I've done some mortality table look ups, added a margin of years to that, then run my own estimates bracketed by zero return on investments and a very conservative return to see if the savings will last to the estimate age of my demise.

As a coworker of mine said "Hope is not a plan".

[Khan]

I will die first and will leave what I can to him.
He will have to figure out how to live on reduced amount.
I have no control after that.

[REWahoo]

Quote:

Originally Posted by BBQ-Nut As a coworker of mine said "Hope is not a plan".

And certainty is uncertain.

[steelyman]

Quote:

Originally Posted by REWahoo And certainty is uncertain.

That's what happens if you're a romantic rover.

[NW-Bound]

Quote:

Originally Posted by BBQ-Nut I'm a bit surprised so many here 'hope' that the money doesn't run out. I guess being an engineer, I over analyze, but I've done some mortality table look ups, added a margin of years to that, then run my own estimates bracketed by zero return on investments and a very conservative return to see if the savings will last to the estimate age of my demise. As a coworker of mine said "Hope is not a plan".

A WR of 3.5% IS my plan. And I surely hope that the money does not run out, because I plan to cut back to 3.5% of "current balance" if necessary.

The truth is that the biggest uncertainty is my longevity; the money issue is much less important.

[ERD50]

Quote:

Originally Posted by BBQ-Nut ... As a coworker of mine said "Hope is not a plan".

And when you start retirement, w/o a crystal ball, what can you do but take a historically conservative WR% and then 'hope' that the future is not worse than the worst of the past? It's not something we have control over.

And you re-evaluate as time marches on.

So what is your plan, that contains certainty? Did you use your engineering skills to build a time machine?

-ERD50

[BBQ-Nut]

Quote:

Originally Posted by ERD50 And when you start retirement, w/o a crystal ball, what can you do but take a historically conservative WR% and then 'hope' that the future is not worse than the worst of the past? It's not something we have control over. And you re-evaluate as time marches on. So what is your plan, that contains certainty? Did you use your engineering skills to build a time machine? -ERD50

Gee - thanks for the poke in the eye....

At least I'm crunching numbers and coming up with some sort of estimate.

My question was related to - have people actually tried to plan this out? Of course times change, but shrugging the shoulders and resigning yourself to not even trying is not very responsible, imo, of course.

[ERD50]

Quote:

Originally Posted by BBQ-Nut Gee - thanks for the poke in the eye.... At least I'm crunching numbers and coming up with some sort of estimate. My question was related to - have people actually tried to plan this out? Of course times change, but shrugging the shoulders and resigning yourself to not even trying is not very responsible, imo, of course.

Not a poke in the eye, just trying to understand the question, and your comments (which some might see as poking at them), that they are just 'hoping' and don't have a 'plan'.

And who says others are not 'crunching the numbers'? This forum crunches numbers ad nauseum. FIRECalc is a number cruncher.

Looking at your 'plan' -

Quote:

I guess being an engineer, I over analyze, but I've done some mortality table look ups, added a margin of years to that, then run my own estimates bracketed by zero return on investments and a very conservative return to see if the savings will last to the estimate age of my demise.

Can you provide specifics? Mortality - how many years margin, and margin relative to what? Mean, 10%, 5%, 1%?

And aren't you 'hoping' that your portfolio will provide at least a real return? What if it doesn't? I just don't see the distinction between what you are saying, and what you seem to be chastising others for?

-ERD50

[Hermit]

Quote:

Originally Posted by Khan I will die first and will leave what I can to him. He will have to figure out how to live on reduced amount. I have no control after that.

"I will die first" was my plan too. Hope it works out better for you than it did for me.

[Alan]

Quote:

Originally Posted by BBQ-Nut Gee - thanks for the poke in the eye.... At least I'm crunching numbers and coming up with some sort of estimate. My question was related to - have people actually tried to plan this out? Of course times change, but shrugging the shoulders and resigning yourself to not even trying is not very responsible, imo, of course.

I planned for one of us to live to 95 and maintain a certain level of spending. The calculators show we will leave a chunk of money to our children even in the worst situation. If this turns out to be correct then we will be very happy. We have told our kids not to expect anything.

[HFWR]

Quote:

Originally Posted by ERD50 This forum crunches numbers ad nauseum.

Yeah, that.

[meekie]

I'm "hoping" that our returns will be so good that I'll have extra money to give as part of a charitable gift annuity or something similar while I'm still alive. No kids, might leave a little to my nephews, but hope to give away what I can while I'm still alive.

[braumeister]

The plan here calls for both of us to live to age 100. Since DW is two years younger, that's a long time.

Still, how can anyone really plan for everything?

The mother of a friend died not long ago at 103, and she needed round-the-clock care for her last five years. Since we're self-insuring for LTC, a stray statistic like that just boggles my mind. Who can possibly predict what that kind of care will cost so far in the future?

Consequently, I behave very, very conservatively in financial matters. Ignoring pension and SS, the portfolio is 70% equities, but much lower with those items included. I feel this is my safest course of action.