Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Growing Net Worth In Retirement
Old 12-18-2013, 07:04 PM   #1
Recycles dryer sheets
 
Join Date: Dec 2012
Posts: 390
Growing Net Worth In Retirement

There's so much discussion about having enough money in retirement, SSI, etc., I wonder what the reality is for most on this board.

There's talk about drawing down but at a reasonable rate so you won't be left with much when you die, but you won't be impoverished.

How many of you are actually still saving and increasing your net worth, and how many are drawing from their savings to fund retirement?

I had a friend who's step dad had a few months to live. He bragged how he saved all his pension checks and his big expense was going out to eat once a week while having his caddy washed/waxed.

So, is your portfolio growing or declining?
__________________

__________________
Elbata 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 12-18-2013, 07:09 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,490
Mine has grown over the last two years because investment results have been much higher than I expected and much more than my withdrawals. But I don't necessarily expect that to continue but if it does I won't complain.
__________________

__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
pb4uski is offline   Reply With Quote
Old 12-18-2013, 07:14 PM   #3
Thinks s/he gets paid by the post
Katsmeow's Avatar
 
Join Date: Jul 2009
Posts: 3,400
DH retired 3 1/2 years ago and I semi-retired. We expected our portfolio to go down over the 5 -6 years after that because we would have some high expenses related to adolescent kids and sending them to college and in connection with buying a different house and moving. So, the portfolio is down from when we started. However, it is down less than I would have expected 3 1/2 years ago and it is currently up for the year even though we are in a period of high withdrawals (kids in college). We expect over the next 3 years to withdraw about 30% of the portfolio, but then withdrawals will fall to much lower.
__________________
Katsmeow is offline   Reply With Quote
Old 12-18-2013, 07:15 PM   #4
Thinks s/he gets paid by the post
Onward's Avatar
 
Join Date: Jul 2009
Posts: 1,668
Mine has grown about 25% since I FIREd in 2010, even though I have been withdrawing all my expenses from it. I'm about 70% stocks.

Almost all the increase is investment gain. A tiny bit is due to part-time work.
__________________
And if I claim to be a wise man, it surely means that I don't know.
Onward is offline   Reply With Quote
Old 12-18-2013, 07:23 PM   #5
Recycles dryer sheets
 
Join Date: Apr 2013
Location: Thousand Oaks
Posts: 220
The portfolio will probably continue to grow, since I have no intention of ever touching it. Started receiving a pension which provides more than enough to live on.

The biggest factors in this happy circumstance:
-Didn't hate my job. If I had, I'm sure I would have run some numbers and left years ago. Since I didn't, I just figured I might as well keep on working.
- Paid off the mortgage. Several months ago the single biggest expense just disappeared.

Highly recommended if you can swing it.
__________________
"Being shot out of a cannon will always be better than being squeezed out of a tube. That is why God made fast motorcycles, Bubba…" Dr. Hunter S. Thompson.
chilkoot is offline   Reply With Quote
Old 12-18-2013, 07:29 PM   #6
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,949
I retired in 2009, so you can probably guess what my answer will be!

Yes, my (very conservative) portfolio has grown 21%, even though I have been living off of it and have not even claimed my social security benefits yet.

I would be a fool to expect the market to always head upwards as it pretty much has since the crash, though. If/when we have another market crash, I plan to claim SS immediately and wait it out.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is offline   Reply With Quote
Old 12-18-2013, 07:33 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 11,983
Our net worth has increased since I retired, probably like most retirees (except those with ridiculously high withdrawal rates), but it's more a function of favorable market performance over the past 5 years than anything else. If you'd asked in 2009, I'm sure most people would give a completely different response than today. And you can bet there will be unfavorable answers again at some point in the future. So not sure what conclusion you could draw from today's responses.

Anyone whose portfolio has not grown after withdrawals over the past five years, might do well to reconsider their withdrawal rate plan...
Attached Images
File Type: jpg image.jpg (51.1 KB, 78 views)
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is online now   Reply With Quote
Old 12-18-2013, 07:46 PM   #8
Recycles dryer sheets
 
Join Date: May 2011
Posts: 272
Our net worth has grown much more than I expected since retirement in 2010. Have not taken SS or IRA distributions yet, so we have a good cushion to work from.
__________________
sanfanciscotreat is offline   Reply With Quote
Old 12-18-2013, 08:11 PM   #9
Thinks s/he gets paid by the post
veremchuka's Avatar
 
Join Date: Oct 2010
Location: irradiated - too close to the nuclear furnace
Posts: 1,294
My goal is to grow the nest egg and so far I am. It is not easy though, without a paycheck and matching employer contributions all you have is growth of the funds you hold. I have a pension and SS which allows me to bank about $1000 to $1800 a month, average is about $1500 but once in a while it may be low hundreds or negative when big bills come. I haven't touched investments other than a small distribution to help pay off the mortgage. retired 8/2007. Took a wicked hit in 2008 and 2009, moved too much too late to Stable Value fund and watched as the market recovered it all. Amazingly while I was not in equities for 1/2 of that recovery I'm almost back to my all time high amount but figuring I paid off the house and liquidated assets to do so I think I must be ahead just at a slightly lower amount.
__________________
veremchuka is offline   Reply With Quote
Old 12-18-2013, 08:12 PM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,490
IOW, whee....................
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
pb4uski is offline   Reply With Quote
Old 12-18-2013, 08:15 PM   #11
Recycles dryer sheets
 
Join Date: Aug 2011
Location: aberdeen
Posts: 267
It all depends on the % one withdraws every year. It has increase for most because of the stock market rise. It of course also depends most on how much you have there in the first place.
__________________
Birchwood is offline   Reply With Quote
Old 12-18-2013, 08:20 PM   #12
Thinks s/he gets paid by the post
frayne's Avatar
 
Join Date: Oct 2002
Location: 19th Hole
Posts: 2,535
Have been retired eight years now and net worth has grown by 35%, in spite of spending approx. $50K per year. Portfolio has roughly been a 60/40-stock/fixed income split. The stock portion has been primarily index funds.
__________________
A totally unblemished life is only for saints.
frayne is offline   Reply With Quote
Old 12-18-2013, 08:32 PM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,453
In this bull market, everybody is a brilliant portfolio grower whether he's withdrawing for ER or not. We will have to check back in a few years.
__________________
"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky
NW-Bound is online now   Reply With Quote
Old 12-18-2013, 08:46 PM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
calmloki's Avatar
 
Join Date: Jan 2007
Location: Independence
Posts: 5,460
In 2010 we bought a winter place in SoCal and started staying there about 6 months of the year, leaving the rental properties in other's care. Our net worth has continued to rise, though not by 3% every year (roughly what I figure inflation accounts for). On the other hand, each year we live knocks maybe 5% off the size of the nest egg we need to live on till we shuffle off to Valhalla, so we have that going for us....
__________________
calmloki is online now   Reply With Quote
Old 12-18-2013, 08:49 PM   #15
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Moemg's Avatar
 
Join Date: Jan 2007
Location: Sarasota,fl.
Posts: 10,039
I retired in January 2008 and took a huge hit almost immediately . My portfolio has fully recovered and then some despite taking withdrawals for five years .
__________________
Moemg is offline   Reply With Quote
Old 12-18-2013, 08:53 PM   #16
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,453
Quote:
Originally Posted by calmloki View Post
On the other hand, each year we live knocks maybe 5% off the size of the nest egg we need to live on till we shuffle off to Valhalla, so we have that going for us....
If our time is constantly expended, why worry about growing the stash? Well, one needs to build surplus in good years to prepare for possible future famine years. This is more important for young early retirees in their 40s than for geezers.

I have a feeling that I myself will run out of time before money. But I like to see my stash grow because I am a scrooge, and that is hard to change.
__________________
"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky
NW-Bound is online now   Reply With Quote
Old 12-18-2013, 08:59 PM   #17
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Posts: 3,863
We won't be "saving" anything, but I fully expect our portfolio to grow after our last few years of heavy spending. Though it's kind of hard to account for Roth conversions, which technically draw down the portfolio to pay the taxes but in reality leave the after-tax value unchanged.

The 4% FIRECalc SWR "normally" grows portfolio net worth throughout retirement. It's only the bad scenarios that require a portfolio drawdown.
__________________
Animorph is offline   Reply With Quote
Old 12-18-2013, 09:24 PM   #18
Thinks s/he gets paid by the post
Katsmeow's Avatar
 
Join Date: Jul 2009
Posts: 3,400
Quote:
Originally Posted by Midpack View Post
Anyone whose portfolio has not grown after withdrawals over the past five years, might do well to reconsider their withdrawal rate plan...
Not necessarily. Yes, if someone is planning a 30 year retirement is withdrawing 10% a year then maybe they need to rethink it. On the other hand, if someone is spending down some of the portfolio for specific expenses that won't continue forever or to bridge the gap to SS then maybe that is just part of the plan.

Our portfolio has not grown over the past 3 1/2 years (measuring from when DH retired since he took a lump sum at retirement which he rolled into an IRA so we didn't have a good part of the portfolio 5 years ago). However - this was planned and our withdrawal rate plan is variable. We knew that the portfolio would go down during a period of 5 years of high expenses primarily having adolescents still in the household, college expenses and we also used some money to buy our current home (that money is no longer in the portfolio but is still part of our net worth).

The point is that once our kids are out of school we project that we will thereafter being withdrawing only a little over 3% from what will then be our smaller portfolio.

As it turns out, however, due to to market performance since DH retired the portfolio has not gone down very much and much less than I had originally projected it would go down by this point.
__________________
Katsmeow is offline   Reply With Quote
Old 12-18-2013, 09:56 PM   #19
Full time employment: Posting here.
 
Join Date: Apr 2006
Posts: 944
Jumped out 06/06 and am up about 20%

but I remember being down about 47% at one point in 09. I waited til the market got to 14,000 and changed my portfolio to 50/50 - don't want to have losses like that again even if it is just paper/temporary...
__________________
Freed at 49. You only live once - live it
Donzo is offline   Reply With Quote
Old 12-18-2013, 11:37 PM   #20
Thinks s/he gets paid by the post
 
Join Date: Mar 2010
Posts: 1,649
I will be "retiring" Dec 31st, meaning my income check will stop but my husband will not be retiring. That said, I will still be bringing in income from two other sources other than my investments, enough to cover all monthly costs. Will also have the ability to bank/save the majority of yearly K1 distribution as well as letting dividends compound and investments grow. At the same time, my husband will also save in his accounts.

My plan is to continue to grow net worth/investable assets for at least 5 more years and hopefully reach another milestone. By then both my husband and I will be 63. Will he retire then? Who knows. But I don't think I or we will start spending down investable assets until he does.

Like others here, I will probably delay social security, although I want to take a closer look at something Midpack posted regarding the taxation of those benefits and that it may be more advantageous to take those benefits before the RMD of retirement accounts kick in at age 70.

It is entirely possible I may never have to draw down my assets. This is a catch 22 for me. If I don't do something...like spend part of it on something like a beach cottage...I know I will simply be handing it over to our children. By that time it will probably have doubled or tripled because I will simply keep saving (nature of the beast). On the other hand, if I buy a beach cottage now, I worry that something will happen to my husband, or that one or both of us will be diagnosed with some long protracted illness requiring my assets or that something will happen to the family business and that K1 income will dry up.

So for now, even though I am retiring nothing much changes. Keep saving, investing and living more than within our means...because we can and because there is no earth shattering reason or desire we have at the moment to change it.
__________________

__________________
sheehs1 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


 

 
All times are GMT -6. The time now is 10:50 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.