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Old 11-27-2010, 05:05 PM   #21
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BTW, REWahoo

We visited Austin about 5 years ago and really loved that town. It is on our list for a place to make a second home.
W
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Old 11-27-2010, 05:06 PM   #22
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BTW, REWahoo

We visited Austin about 5 years ago and really loved that town. It is on our list for a place to make a second home.
W
What do you have against me?
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When I hit 70, it hit back

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Old 11-27-2010, 05:08 PM   #23
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O.K. Kumquat,

The FIRECalc says I won't be broke before I die if I spend another 70K/yr. If you were in my situation, how much confidence would you have in that?

W
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Old 11-27-2010, 05:10 PM   #24
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REWahoo,

OOOPS, Austin is not hill country? OR, you don't like Yankees?

I was schooled in Kansas and play bluegrass guitar and mandolin. Is that any better?

W
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Old 11-27-2010, 05:11 PM   #25
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Guess you haven't heard - we're full.
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Old 11-27-2010, 05:12 PM   #26
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Sounds to me like you could be living under an overpass any time now. I'd cut down on food and other luxuries. 3.4M should only last a year or 2 more with inflation right around the corner.
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Old 11-27-2010, 05:36 PM   #27
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O.K.
My wife and I just bought a used Airstream trailer and a new Ford F250 to tow it. I could have spent an extra 5K for a totally tricked out top of the line truck for an extra 3-4K (spent 44K on the one we got).

So, it seems I could easily have afforded the extra luxury. But, my frugality kept me from doing so.

W
Very true - it is the ongoing costs that add up.
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Old 11-27-2010, 05:38 PM   #28
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Quote:
Originally Posted by wrochdvm View Post
O.K.
My wife and I just bought a used Airstream trailer and a new Ford F250 to tow it. I could have spent an extra 5K for a totally tricked out top of the line truck for an extra 3-4K (spent 44K on the one we got).

So, it seems I could easily have afforded the extra luxury. But, my frugality kept me from doing so.

W
If your frugality is stealing your enjoyment of life then you are overdoing it.

Frugal and Cheap living are not good ideas


That is correct, I am saying that frugal, cheap living, cheapskate, tightwad, penny pinching are not good ideas. ...

Why is frugal and cheap living not a good idea? Because of how they influence your life, color your view of the world and the potential they have to steal from you.
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Old 11-27-2010, 05:46 PM   #29
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Dex, your last 2 posts confuse me, did you have a change of heart after the one before last.
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Old 11-27-2010, 05:55 PM   #30
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Your current spending is about right for the total assets, though conservative. Your income from the rental is distorting the picture. If you up your spending and then sell the rental and add the proceeds to your portfolio, your spending would look more aggressive.

If you are flexible enough to cut back again if you have to, and you feel good about the rental long term, go for it anyway. If you really want to leave an estate and that makes you feel good, then don't spend the extra. It's the future, who knows?
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Old 11-27-2010, 06:15 PM   #31
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Listen.....Don't worry so much! Nobody gets out of here alive, and if everything goes wrong, you will probably have enough to park the airstream at a nice campground in South or North Carolina for about $150 a month! A friend of mine owns a campground down there and that is what he charges.....and there is a stocked lake on the grounds and a pool. And you would have plenty of money left over to travel and fly out west or to New England to ski each winter!
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Old 11-27-2010, 07:04 PM   #32
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While I may have misunderstood your situation, I am assuming you are talking about p.a. spending increasing from approx. $120,000 to $200,000.

If so, I would NOT be comfortable spending at that level at age 58 with a net worth of $3.5 million. Not even close IMHO.
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Old 11-27-2010, 07:17 PM   #33
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The OP's trump card, as explained, is a commercial RE worth $750K but generating $120K/year. I know nothing about commercial RE, but boy, oh boy, what have I been missing out on!
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Old 11-27-2010, 10:26 PM   #34
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in reply to NW-Bound

The lease for the real estate does not reflect true market rates. It is a medical practice with a long history.
W
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Old 11-27-2010, 10:45 PM   #35
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O.K.
I may be mistaken. But, I thought that this forum could provide objective financial advice. While my initial question had ambiguity about my financial decisions, those questions should not involve matters of personal values.

I simply want to know whether or not, given the current economic environment, if there is an agreement about how much of my principle I can draw down and still be solvent in my old age.

My wife and I live very comfortably in the house that we own. We travel and, until recently, have had a modest yacht. We are now embarking on an extended cross country excursion. We bought a used Airstream trailer and a new F250 truck. For a few thousand more I could have bought a fully tricked out Lariat or Ranch King.

So, am I being too frugal? The luxury of the higher end vehicles would be enjoyable. But, my frugal side says, don't do it.
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Old 11-27-2010, 10:55 PM   #36
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Quote:
Originally Posted by wrochdvm View Post
O.K.
I may be mistaken. But, I thought that this forum could provide objective financial advice. While my initial question had ambiguity about my financial decisions, those questions should not involve matters of personal values.

I simply want to know whether or not, given the current economic environment, if there is an agreement about how much of my principle I can draw down and still be solvent in my old age.

My wife and I live very comfortably in the house that we own. We travel and, until recently, have had a modest yacht. We are now embarking on an extended cross country excursion. We bought a used Airstream trailer and a new F250 truck. For a few thousand more I could have bought a fully tricked out Lariat or Ranch King.

So, am I being too frugal? The luxury of the higher end vehicles would be enjoyable. But, my frugal side says, don't do it.
You are being too frugal. Buy the Brooklyn Bridge and charge tolls.
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Old 11-27-2010, 11:00 PM   #37
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Yup, you sound very frugal to me. After all you could have gotten the fancier truck or even a bigger Yacht. I'll bet the Airstream doesn't even have AC.
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Old 11-27-2010, 11:50 PM   #38
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Quote:
Originally Posted by wrochdvm View Post
O.K.
I may be mistaken. But, I thought that this forum could provide objective financial advice. While my initial question had ambiguity about my financial decisions, those questions should not involve matters of personal values.
I simply want to know whether or not, given the current economic environment, if there is an agreement about how much of my principle I can draw down and still be solvent in my old age.
So, am I being too frugal? The luxury of the higher end vehicles would be enjoyable. But, my frugal side says, don't do it.
Actually your financial questions do involve matters of personal values.

We have ERs here who have managed to spend only $13K in a year (admittedly not every year). We have many who spend around $30K/year, a number who spend around $50K, and a few who moan piteously that they couldn't possibly survive on less than $100K.

What you see as "frugal" is viewed by a few as "more than enough" and perhaps by a few more as "deprivation". It's a personal value.

You will never get consensus here, let alone agreement. In fact if you get 20 replies to your post then they'll contain at least 25 different ways to achieve your goal, all of them better than the others.

We also have the Internet's usual assortment of survivalists, paranoids, and skeptics. Another poster would prefer that Texas forbid all further immigration to the state. Several posters (me included) have noticed that this board attracts a high volume of spammers and trolls, so it may take a few posts to gain the acceptance of the membership.

The 4% thumbrule says that you should be able to withdraw 4% of your ER portfolio at the beginning of your first year of ER, raise that amount by inflation at the beginning of each subsequent year, and keep up that routine for at least 30 years. If you reduce that initial draw to 3.5% then you'll probably be fine for 40-50 years, although some of the results depend on whether or not you encounter a nasty bear market during the first few years of ER. If you spend less than 4% per year (not adjusting for inflation) then of course you'll never run out. If you vary your withdrawals each year to roughly 3-4%, depending on how you feel about the economy and your portfolio's performance, then you'll never run out.

If your frugal side says "don't do it", then don't do it. It's a personal choice. But don't be surprised if you get some teasing, and perhaps a few admonishments from those who can't stand to see anyone else endure at less than their own personal standard of living.
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Old 11-28-2010, 12:37 AM   #39
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We also have the Internet's usual assortment of survivalists, paranoids, and skeptics.
Some of us are all 3 of the above.

Quote:
Another poster would prefer that Texas forbid all further immigration to the state...
No, make that a possibility of being all 4.
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Old 11-28-2010, 01:40 AM   #40
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I agree with Nords on this point.

Quote:
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Actually your financial questions do involve matters of personal values.
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