I have been very frugal and fairly successful. I have a net worth of about 3.4M. About 2.0M is in stocks, bonds and cd's ( 40%, 40% and 20% respectively). The rest is in commercial real estate (750K value generating 120K/yr) the rest is in my home and personal property.
I have been retired for the last 3 years and have limited my spending to the income available from my real estate and a small amount from consulting (less than 8K/year).
I have run the FIRECalc and at age 58 (wife is 59) it seems I should be able to spend about 70-80K more per year.
But, I seem to have a great fear of doing that. I'm worried that inflation such as we saw in the early 80's is almost guaranteed (at least in my mind). So that, even though I have a good amount in equities, it may not be enough to guard against inflation.
Am I being too paranoid?
W
I have been retired for the last 3 years and have limited my spending to the income available from my real estate and a small amount from consulting (less than 8K/year).
I have run the FIRECalc and at age 58 (wife is 59) it seems I should be able to spend about 70-80K more per year.
But, I seem to have a great fear of doing that. I'm worried that inflation such as we saw in the early 80's is almost guaranteed (at least in my mind). So that, even though I have a good amount in equities, it may not be enough to guard against inflation.
Am I being too paranoid?
W