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For those that have retired with =>$5M in investable assets
Old 02-01-2016, 10:43 AM   #1
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For those that have retired with =>$5M in investable assets

How is your budget working out?

Curious to know if you end up with more money at year-end or shortfall?

Thanks in advance!
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Old 02-01-2016, 11:29 AM   #2
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Originally Posted by serie1926 View Post
How is your budget working out?



Curious to know if you end up with more money at year-end or shortfall?



Thanks in advance!

Not sure what 5 million watermark would have to do with budget hitting.

Also not sure lot's of people would want to self identify they have 5million by responding.


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Old 02-01-2016, 11:31 AM   #3
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Who budgets? When the Champagne runs out, just order another bottle!
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Old 02-01-2016, 11:32 AM   #4
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People with > $5 million don't need no stinkin' budget.
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Old 02-01-2016, 11:38 AM   #5
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How is your budget working out?
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Old 02-01-2016, 11:40 AM   #6
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Surely whether you end the year with a personal budget surplus or shortfall has more to do with whether you spend more (or less) than your income, and not with the actual dollar amount of your portfolio.

I'm scratching my head on this one.
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Old 02-01-2016, 11:48 AM   #7
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How is your budget working out?

Curious to know if you end up with more money at year-end or shortfall?

Thanks in advance!
My guess is there will be quite a few responses to this post but not many will be on topic.
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Old 02-01-2016, 11:51 AM   #8
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"My guess is there will be quite a few responses to this post but not many will be on topic."

Sure looks that way...
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Old 02-01-2016, 11:57 AM   #9
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My guess is there will be quite a few responses to this post but not many will be on topic.
Why would you say that?
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Old 02-01-2016, 12:05 PM   #10
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I do not have $5M, and likely will not when I retire in 5 months.

I do project my NW will be close to that in a few years, especially if my DGFs NW is included in it. It will not be in investable assets, but in rental real estate. Mostly because I have been paying off mortgages. It is very hard to buy even a cup of coffee with an apartment building.

I could sell and invest at that time, but the taxes and commissions would make $5M look more like $4M, or less. Even so, If I spend more than I make, it will not last. If I spend less, it will grow.

I have heard that $5M is a key number to being financially independent with no worries, and there is a bunch of sports figures, movie stars, lottery winners, etc. that would say otherwise.

A number like $5M is just that, a number. Without the rest of the context, it means nothing.
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Old 02-01-2016, 12:11 PM   #11
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Curious to know if you end up with more money at year-end or shortfall?
Ending up with more at year-end than when started IS THE PLAN of just about everyone on this forum.

Portfolio size isn't relevant, planning is.
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Old 02-01-2016, 12:16 PM   #12
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"My guess is there will be quite a few responses to this post but not many will be on topic."

Sure looks that way...
Maybe you'd like to expand on why you are asking only those with $5M or more?
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Old 02-01-2016, 12:20 PM   #13
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Someone with mid-seven figure portfolio has a greater portion of discretionary expenses. These are easier to reduce, so a year-end financial goal might be achieved by pushing off some expenses into the future.
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Old 02-01-2016, 12:44 PM   #14
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Even so, If I spend more than I make, it will not last. .
I wonder what you mean by that?

Of course, it will not last for eternity. But, it may last long enough. For example, FireCalc tells me my WR (increased annually by inflation) could exceed the earning level of my FIRE portfolio going forward. Eventually, in some scenarios, I'll deplete the portfolio if I live long enough. But, if historical limits continue, I'll be well over 100 yrs old when that happens.

Other eventualities might lead the FIRE portfolio to actually increase in real dollars.

It's a pesonal decision of course, but for me spending only to the point where my FIRE portfolio holds steady or grows in real dollars is way too conservative.
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Old 02-01-2016, 12:51 PM   #15
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Retiring on $5 million is pretty rough. I wouldn't recommend it.
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Old 02-01-2016, 12:52 PM   #16
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Maybe you'd like to expand on why you are asking only those with $5M or more?
Probably a failed attempt to avoid off-topic comments from the riff-raff.
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Old 02-01-2016, 12:57 PM   #17
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Ending up with more at year-end than when started IS THE PLAN of just about everyone on this forum.
Yes, I've noticed that trend growing the past few years.

Many people seem to be taking the outlook that the goal is to have as much or more, in real dollars, at the end as in the beginning whether you're talking a single year or the balance of your life. Whereas in earlier years on the Forum most seemed to be looking at simply not running out of money while trading it for the retirement lifestyle they enjoyed the most.

I think the proportion of folks who get more satisfaction out of not spending than spending is growing. For example, there seem to be more folks who would gain more satisfaction from staying home and not spending $10k on travel than actually doing the travel. They'd really enjoy the travel. But they'd enjoy opening the spreadsheet and seeing the unspent money there even more.

After a lifetime of intense planning and saving, seeing your portfolio grow in real terms post retirement is more satisfying than spending some money to have more experiences.

Not my view but I can understand how it can be for many.
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Old 02-01-2016, 01:07 PM   #18
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I think the proportion of folks who get more satisfaction out of not spending than spending is growing. For example, there seem to be more folks who would gain more satisfaction from staying home and not spending $10k on travel than actually doing the travel. They'd really enjoy the travel. But they'd enjoy opening the spreadsheet and seeing the unspent money there even more.
When you travel, it is a commitment. You won't have time to log onto e-r.org, nor time to check your spreadsheet.

Better to stay home in front of the computer or tablet. For sure.
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Old 02-01-2016, 01:45 PM   #19
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Yes, I've noticed that trend growing the past few years.

Many people seem to be taking the outlook that the goal is to have as much or more, in real dollars, at the end as in the beginning whether you're talking a single year or the balance of your life. Whereas in earlier years on the Forum most seemed to be looking at simply not running out of money while trading it for the retirement lifestyle they enjoyed the most.

I think the proportion of folks who get more satisfaction out of not spending than spending is growing. For example, there seem to be more folks who would gain more satisfaction from staying home and not spending $10k on travel than actually doing the travel. They'd really enjoy the travel. But they'd enjoy opening the spreadsheet and seeing the unspent money there even more.

After a lifetime of intense planning and saving, seeing your portfolio grow in real terms post retirement is more satisfying than spending some money to have more experiences.
Not me, not me!!!!! I'm a newbe on this board, but I assure you that's not me!!!
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Old 02-01-2016, 01:46 PM   #20
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Retiring on $5 million is pretty rough. I wouldn't recommend it.
+1 No way would I risk cutting it that close.
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