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Cracking the nest egg
Old 03-13-2007, 09:36 PM   #1
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Cracking the nest egg

What about a FireCalc or other formula that assumes one is willing to spend down their principal balance? In other words, let's say one can sweat and work another 20 years to achieve a SWR at the usual retirement age, or one can retire today, tap the nest egg, and enjoy ER for a solid 30 years. Having no dependents, that's an option I face today.

"What do you do when you hit 80 and you're broke?" I say thanks, it's been a great run of 30 years, glad I could enjoy the most healthful years left in my life. I'll die broke and happy. Que sera.

Turning 50, attending funerals, having brushes with death, one realizes all the more how life gets shorter the longer you live.
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Re: Cracking the nest egg
Old 03-13-2007, 09:50 PM   #2
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Re: Cracking the nest egg

80 isnt as old as you think it is. You may hit 80 and not want to slow down. Knowing that you have a 30 year clock ticking down may cast a shadow over the years between now and then. Maybe working part time and taking more vacations now is a better idea. I am in my 20s. With all of the advances in medicine, I expect my peers and I will generally live past 100, and be functioning well into our late 80s/early 90s. You will benefit from a lot of those advances too...
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Re: Cracking the nest egg
Old 03-13-2007, 09:50 PM   #3
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Re: Cracking the nest egg

FIREcalc does assume that you're spending down your principal. Failure means negative balance.
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Re: Cracking the nest egg
Old 03-13-2007, 10:17 PM   #4
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Re: Cracking the nest egg

Quote:
Originally Posted by wab
FIREcalc does assume that you're spending down your principal. Failure means negative balance.
Oops, my bad assumption. I'll have to re-visit. Thanks.
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