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Old 07-23-2007, 06:33 PM   #21
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My "number" is higher than my current expenses because I want to do a lot more traveling than I do now. However, I don't expect that travel surge to continue for that many years so I have a conservative living fund covered by SS and a portion of my nest egg (4% SWR). The travel/extra fund is expected to be depleted so it's done on a Bernicke formula. At 75 I'll still have a decent amount of "extra" money available but not as much as I had when I first retire.
2B, your plan sounds like Paul Terhorst but I may break his rule about keeping housing expenses as low as possible: One of the possibilities is that I may move into better living space and remain in an expensive area. If I do that, the additional expense will continue forever. I'm also concerned about higher-than-usual inflation. I just took a nice profit when I re-balanced on July 15 and will be watching to see which way the market goes between now and April. Thanks, 2B, I'll look into the "Bernicke formula."
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Old 07-24-2007, 10:28 AM   #22
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Has anyone taking a greater %, like 5 or 6%, for the 1st few years until SS kicks in, then reduce your w/d rate back to 3 or 4%?

JD
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Old 07-24-2007, 11:21 AM   #23
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Has anyone taking a greater %, like 5 or 6%, for the 1st few years until SS kicks in, then reduce your w/d rate back to 3 or 4%?

JD
I'll let you know how it works...
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Old 07-24-2007, 05:18 PM   #24
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Has anyone taking a greater %, like 5 or 6%, for the 1st few years until SS kicks in, then reduce your w/d rate back to 3 or 4%?

JD
Do FIRECalc with SS and all your other assets included and it will work out the conservative approach. There's nothing wrong with "self annuitizing" your SS before you actually start drawing it. I have decided to attempt to defer SS until age 70 but I'll be spending more than 4% because I will be depleting assets equivalent to my SS payments. I'll intentionally lose a few hundred thou to have the spending power when I'm young enough to enjoy it. When I turn 70, I'll have the SS and what's left of my other assets.

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Old 07-25-2007, 02:03 PM   #25
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Everyway I run it, the highest success rate is if we both take SS at age 62.
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Old 07-25-2007, 05:49 PM   #26
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Everyway I run it, the highest success rate is if we both take SS at age 62.
That's because of the length of your plan. Taking SS at 70 cuts 8 years of a much lower benefit that may be for a plan that only runs until you are 85. I look upon SS as "longevity insurance." It's COLA'd and, if all else fails, is probably enough to survive on until DW and/or I enter the nursing home.
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