Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Do We Have 10+ Year Retirees?
Old 02-08-2019, 09:23 AM   #1
Thinks s/he gets paid by the post
Rianne's Avatar
 
Join Date: Aug 2017
Location: Champaign
Posts: 1,493
Do We Have 10+ Year Retirees?

All the wisdom on this forum brings me to the question of portfolio longevity. I can hope for the best in the future, but what about those who survived the 2008 crash, dips in the past (15-20 years) and are doing just fine?

I can guess from a few posters but it would be interesting to see the numbers.

-At any point did you have to curb your spending?
-How did you adjust your portfolio during 2008-2012?


I tire of the hype in financial media about what to do next. Learning from the past is advantageous to the future (personal experiences, not graphs, calculators and tables).
__________________

__________________
"If you want to go fast, go alone. If you want to go far, go together.
Rianne is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 02-08-2019, 09:47 AM   #2
Recycles dryer sheets
arky's Avatar
 
Join Date: Jan 2012
Location: Colorado
Posts: 250
Entering my 12th year of retirement (retired Jan 1 2008) with a stash that is ~40% greater than the day I retired. So far, so good. Didn't adjust my AA until six years in (went more conservative) and never adjusted my spending.
__________________

__________________
Don't you know that dynamite always blows down ? --- Moe to Curly
arky is offline   Reply With Quote
Old 02-08-2019, 09:52 AM   #3
Thinks s/he gets paid by the post
Rianne's Avatar
 
Join Date: Aug 2017
Location: Champaign
Posts: 1,493
Quote:
Originally Posted by arky View Post
Entering my 12th year of retirement (retired Jan 1 2008) with a stash that is ~40% greater than the day I retired. So far, so good. Didn't adjust my AA until six years in (went more conservative) and never adjusted my spending.
Share AA in the beginning? Conservative changes to what %'s? Impressive, 40%. Are you frugal anyways? We recently went big into CD's when 5 year was 3.5%. I now wonder if that was too conservative.
__________________
"If you want to go fast, go alone. If you want to go far, go together.
Rianne is offline   Reply With Quote
Old 02-08-2019, 09:55 AM   #4
Moderator Emeritus
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 41,839
Quote:
Originally Posted by Rianne View Post
All the wisdom on this forum brings me to the question of portfolio longevity. I can hope for the best in the future, but what about those who survived the 2008 crash, dips in the past (15-20 years) and are doing just fine?

I can guess from a few posters but it would be interesting to see the numbers.

-At any point did you have to curb your spending?
-How did you adjust your portfolio during 2008-2012?


I tire of the hype in financial media about what to do next. Learning from the past is advantageous to the future (personal experiences, not graphs, calculators and tables).
I retired on November 9th, 2009, so I am in my 10th year but won't be 10+ years until November. So take my answer with a grain of salt.

No, I never had to curb my spending. See below for an idea of my spending patterns so far (not including the various costs of buying and moving to my Dream Home in 2015). I am spending more now than I did during the first few years of retirement, but TBH I was spending less before I retired than after. No more need to save for retirement.

During 2008-2012 I just stuck to my 45:55 AA. It stood by me really well! I was not tempted to sell low, so given my own particular level of risk tolerance, that is a good AA for me during a crash. My portfolio today is 35% greater than it was on the day I retired and would have been 43% greater had I not bought my Dream Home in 2015 and moved into it. Also, due to my "age 70" SS kicking in, last year I spent only 0.60%. I truly do need to "Blow That Dough" at this stage in life.

As of last month I have begun slowly transitioning to a more conservative AA, with "110-age" as my goal for equities. This year, 42:58, then 40:60 next year, then 38:62 the following year (at age 72) and continuing with 110-age from there on out.
Attached Images
File Type: jpg Capture.JPG (28.3 KB, 196 views)
W2R is offline   Reply With Quote
Old 02-08-2019, 09:56 AM   #5
Thinks s/he gets paid by the post
NYEXPAT's Avatar
 
Join Date: Jul 2009
Location: Miraflores,Peru
Posts: 1,686
Retired 32 years this October! Assets halved early on due to divorce, now probably 50% higher. Spending has doubled in the past 4 years since my son was born. SS for the whole family more than offsets the increase.
NYEXPAT is offline   Reply With Quote
Old 02-08-2019, 10:05 AM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Nemo2's Avatar
 
Join Date: May 2011
Location: Belleville, ONT
Posts: 5,706
Stopped working the end of December 1988. Didn't 'retire', since I hadn't been employed long enough. Currently DW & I are worth close to four times what I had when I quit.

We're not spenders, we aren't enthralled by eating out, but we do like to travel a bit.
__________________
"Exit, pursued by a bear."

The Winter's Tale, William Shakespeare
Nemo2 is online now   Reply With Quote
Old 02-08-2019, 10:12 AM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Dawg52's Avatar
 
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 8,178
Almost 12 years for me. I was known as the head banger during the crash. My AA remained the same until all was recovered but I adjusted to a more conservative allocation afterward. I did buy a vacation condo in early 2014 and it has been a decent investment to this point.
__________________
Retired 3/31/2007@52
Investing style: Full time wuss.
Dawg52 is offline   Reply With Quote
Old 02-08-2019, 10:12 AM   #8
Thinks s/he gets paid by the post
ls99's Avatar
 
Join Date: May 2008
Posts: 5,022
Almost 12.5 years of goofing off. Made one adjustment about six years ago moving some $ to Wellesley. Spending habits have not changed. Look at totals every few months when I get a roundtoit. House was paid off a few months after retirement.
Now big expense is paying rent to the school board and local municipality. Else all is well.
__________________
There must be moderation in everything, including moderation.
ls99 is offline   Reply With Quote
Old 02-08-2019, 10:16 AM   #9
Recycles dryer sheets
arky's Avatar
 
Join Date: Jan 2012
Location: Colorado
Posts: 250
Quote:
Originally Posted by Rianne View Post
Share AA in the beginning? Conservative changes to what %'s? Impressive, 40%. Are you frugal anyways? We recently went big into CD's when 5 year was 3.5%. I now wonder if that was too conservative.
When I retired, I was at ~60:40, down from ~75:25, a few years earlier. Currently, I am closer to 30:70. I am on the frugal side but never really followed a budget. My fixed income (which includes a pension and SS) more than covers all my spending.
__________________
Don't you know that dynamite always blows down ? --- Moe to Curly
arky is offline   Reply With Quote
Old 02-08-2019, 10:17 AM   #10
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 44,974
Retired almost 14 years.

Quote:
Originally Posted by Rianne View Post
-At any point did you have to curb your spending?
Have to, no. However we did reduce our spending slightly during the market unpleasantness in 2008 - 2009.

Quote:
Originally Posted by Rianne View Post
-How did you adjust your portfolio during 2008-2012?
In 2008 our AA was 55/45. After the dust cleared I modified our AA to a more conservative 40-45/55-60.

If you have trouble getting to sleep some night, here is a long-running thread on my financial journey in retirement. FIRECalc vs REW

Looks like it is almost time for an update...
__________________
Numbers is hard

Charter resident of the lumpen slums of cyberspace

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 02-08-2019, 10:20 AM   #11
Thinks s/he gets paid by the post
 
Join Date: Apr 2005
Location: Midwest
Posts: 1,933
I retired in 1996 so I'm in year #24.

I have not had to curb spending. But I did up my cash-flow when I moved into a cheaper place.

Annual expenses, while they have zig-zagged up and down, were a whopping $544.00 higher in 2018 than they were in 1999. (the oldest verifiable numbers actually still available.) This does NOT count a new car I bought or money I used to bail out a relative a few years back. That money all came out of separate accounts and did not alter my retirement accounting at all.

I did not adjust anything due to 2008 because I was already out of the stock market in late 2007 and got back in, in early 2009.
razztazz is offline   Reply With Quote
Old 02-08-2019, 10:23 AM   #12
Thinks s/he gets paid by the post
walkinwood's Avatar
 
Join Date: Jul 2006
Location: Denver
Posts: 2,918
Depending on how we count it, we're either approaching our 9th or 11th year. I wrote about it in more detail here
10 Years!
walkinwood is offline   Reply With Quote
Old 02-08-2019, 10:23 AM   #13
Thinks s/he gets paid by the post
 
Join Date: Nov 2009
Posts: 4,868
I retired at the end of business on Friday, October 31, 2008. This was during the big market downturn. However, the downturn gave me an added boost as I began my retirement because it presented me with a wonderful buying opportunity, to buy about 25% more shares of my desired bond fund than I had anticipated when I was putting together my ER plan in 2007 and 2008. Those added shares have spun off extra monthly dividends each and every month in those 20 years and will continue to do so indefinitely.


As for my stock fund holdings, I did some minor rebalancing in early 2009 but mainly stayed the course and saw those stock fund holdings grow in value a lot. Nearly all of my rebalancing moves have been from stocks to bonds in my rollover IRA since that time as I lock in the stock fund gains while seeing my bond fund balance grow and grow without having to add any outside money to it.


As for spending, it has risen slightly, with the most volatile item health insurance. The ACA wasn't around from 2009-2013 so it was a little tense at times. But the ACA has given me some stability, despite recent rate increases. The rest of my spending has been pretty stable but has been creeping upward. It is still low, as a % of my portfolio because the portfolio has risen as quickly.
__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.

"I want my money working for me instead of me working for my money!"
scrabbler1 is offline   Reply With Quote
Old 02-08-2019, 10:32 AM   #14
Thinks s/he gets paid by the post
 
Join Date: Jan 2013
Posts: 1,882
12 years at the end of March. The death of the last parent was the triggering factor. Did some stupid things like give the parents' portfolio to an adviser to manage. He lost almost 50 percent and never fully recovered from the down turn. Finally fired him after four years because I could not take the cost of his fee on top of his high ER mutual funds, his BS stock picks, and his poor performance.

I bought more properties during the down turn. Net worth is the highest ever now and the total net income is at least twice what it was at my last job.
Another Reader is online now   Reply With Quote
Old 02-08-2019, 10:33 AM   #15
Moderator
braumeister's Avatar
 
Join Date: Feb 2010
Location: Midwest US
Posts: 12,724
17 years here.

Portfolio has been adjusted from 60/40 to 50/50.

Spending has been adjusted to increase it a bit in real terms. We still enjoy travel, so we do more of it now.
__________________
I thought growing old would take longer.
braumeister is offline   Reply With Quote
Old 02-08-2019, 10:43 AM   #16
Full time employment: Posting here.
MuirWannabe's Avatar
 
Join Date: Oct 2009
Posts: 944
Quote:
Originally Posted by REWahoo View Post
Retired almost 14 years.







Have to, no. However we did reduce our spending slightly during the market unpleasantness in 2008 - 2009.







In 2008 our AA was 55/45. After the dust cleared I modified our AA to a more conservative 40-45/55-60.



If you have trouble getting to sleep some night, here is a long-running thread on my financial journey in retirement. FIRECalc vs REW



Looks like it is almost time for an update...

Yes, would very much like you to update that thread with the latest. I find it to be very useful and wish to begin similar tracking with my numbers at some point. Itís encouraging. Thanks. (Hope it doesnít feel like w*rk)!
__________________
ďOf all the paths you take in life, make sure a few of them are dirt.Ē John Muir
MuirWannabe is offline   Reply With Quote
Old 02-08-2019, 10:45 AM   #17
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Sep 2005
Location: Northern IL
Posts: 20,912
Quote:
Originally Posted by Rianne View Post
... I tire of the hype in financial media about what to do next. Learning from the past is advantageous to the future (personal experiences, not graphs, calculators and tables).
I'll suggest that both are helpful.

Here's a link, and you can easily rerun it over a different time frame and different WR% (I used 3.5% on a $1M portfolio, it shows a 0/100, 50/50 and 100/0 AA). Then click 'Inflation Adjusted'.

https://goo.gl/KqbNWZ

You can personalize it for your approach. Someone else's comments may not have much value if they are approaching it differently from the start. Pension, SS, other sources of income - lots of influences that may not apply to you. It still can be good to hear what people say, just be aware that it might not have much applicability to anyone but them.

Because of the deep dips in 2000 and 2008, the starting point really matters. But the few time frame examples I ran, showed the retiree to be in pretty good shape.

Me personally - no I did not adjust spending. I planned on an overall conservative WR%, and historically, that means I can survive the dips w/o cutting back. So I didn't (cut that is, I did survive! ).

Emotionally, I was fine. I do recall looking at the 2008-2009 drop as "historic". But also, DW still wants to work, and though she works part year at a modest paying job, it still covers ~ 1/4 of our expenses, so that does take some of the sting out. I also had not started SS or modest non-COLA pension (still haven't), so those were two more fall backs for me.

I did not sell stocks at the low. I actually did re-balance and bought stocks at what happened to be very close to the low. That was mostly luck, it was just at a point where I finally decided to re-balance, I pretty much let it roll otherwise.

-ERD50
ERD50 is offline   Reply With Quote
Old 02-08-2019, 10:46 AM   #18
Thinks s/he gets paid by the post
frayne's Avatar
 
Join Date: Oct 2002
Location: 19th Hole
Posts: 2,884
Retired in 2005 and have slowly adjusted AA from about a 80/20 to a 50/50 mix. Spending has stayed about the same and overall net worth has increased by approx. thirty percent. Both still in relatively good health and pretty much do what we want. Also have self managed my portfolio and fortunate not to have money worries like many others.
__________________
A totally unblemished life is only for saints.
frayne is offline   Reply With Quote
Old 02-08-2019, 10:52 AM   #19
Thinks s/he gets paid by the post
Car-Guy's Avatar
 
Join Date: Aug 2013
Location: Citizen of Texas
Posts: 3,171
Only ~7 years for me. Certainly I have never made any attempt to cut back, matter of fact my spend rate last year was the highest "by far" since I retired. While I have been trying to blow that dough, my NW has been pretty static (+-10%) since I retired.

My biggest concern now is my increasing age and decreasing energy. I'm not sure I could have run much harder than I have since I retired but I now realize I can't keep up this physical pace many more years. Wish I would have started sooner.
Car-Guy is offline   Reply With Quote
Old 02-08-2019, 10:53 AM   #20
Thinks s/he gets paid by the post
Souschef's Avatar
 
Join Date: Dec 2015
Location: Santa Paula
Posts: 2,157
The main thing we have reduced over the years is travel. In the first years of retirement, we were spending about $40K a year on travel.
As time has gone by, and our tolerance for discomfort has decreased, we travel much less, but now at our own pace.
We no longer take Trans Atlantic flights, and our tolerance for airports in general has decreased sharply
DW is slightly mobility impaired, and has difficulty getting on and off a tour bus multiple times a day..
I have seen people comment that as they get older, they will take group tours. What they may not realize is the regimentation on tours. Bags outside at 7, on the bus at 8, etc.
__________________

__________________
Retired Jan 2009 Have not looked back.
AA 50/45/5 considering SS and pensions a SP annuity
WR 2% SI 2SS & 2 Pensions
Souschef is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
24 year old feeling like a 44 year old wanting a 64 year old portfolio Stripes Hi, I am... 9 08-30-2018 05:28 PM
46% of American retirees have no more than $10,000 in savings at the end of life. bondi688 FIRE and Money 8 09-01-2012 02:57 PM
What Retirees Would Have Done Differently kyounge1956 FIRE and Money 32 01-24-2010 05:27 PM
Some early retirees have second thoughts JustCurious FIRE and Money 110 09-01-2008 01:22 PM
Retirees Have more Fun and Adventures! enterretirement Hi, I am... 4 06-13-2008 05:37 AM

» Quick Links

 
All times are GMT -6. The time now is 08:56 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2019, vBulletin Solutions, Inc.