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Old 12-17-2013, 01:24 PM   #41
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Originally Posted by Major Tom View Post
When I began drawing down my portfolio at the age of 47, I had 41 x annual spending. 2.5 years later, I now have 46 x annual spending.
Wow that's an incredible number. I m more impress with the fact that you pulled the trigger at such a young age. Your answer confirmed that I nowhere to be near where I want to be.:-) Congrats.

For me, it;s NOT purely how much $ but how many years from SS and your asset before actually do it. Thanks MajorTom.
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Old 12-17-2013, 01:54 PM   #42
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Quote:
Originally Posted by Major Tom View Post
When I began drawing down my portfolio at the age of 47, I had 41 x annual spending. 2.5 years later, I now have 46 x annual spending.
I am in your nice neighborhood. When I ERed 5 years ago at age 45 (when the markets were tanking), I had about 38 x annual expenses. Now, 5 years into ER and age 50, I am around 54 x annual spending. It will drop to about 50 x annual spending next year when I upgrade to a better HI plan from the ACA's exchanges.
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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!"
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Old 12-18-2013, 01:39 AM   #43
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I am in your nice neighborhood. When I ERed 5 years ago at age 45 (when the markets were tanking), I had about 38 x annual expenses. Now, 5 years into ER and age 50, I am around 54 x annual spending. It will drop to about 50 x annual spending next year when I upgrade to a better HI plan from the ACA's exchanges.
Very impressive. Is your goal to leave a large estate? That would seem to be the logical result.
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Old 12-18-2013, 02:19 AM   #44
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Perhaps, more appropriate question is how many years of annual expense you had when you pulled the trigger?

I have not ER'd yet and have 26 x annual expense. In 2 years when I retire (not sure still), I'd have 30 x annual expense.
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Old 12-18-2013, 06:54 AM   #45
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Very impressive. Is your goal to leave a large estate? That would seem to be the logical result.
Thank you. I am single and have no children, so the size of my estate when I croak is not an issue. It will end up being pretty large in all likelihood. I have a will and am leaving parts of my estate of varying sizes to friends and relatives, though.
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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!"
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Old 12-18-2013, 08:44 AM   #46
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Thank you. I am single and have no children, so the size of my estate when I croak is not an issue. It will end up being pretty large in all likelihood. I have a will and am leaving parts of my estate of varying sizes to friends and relatives, though.
You may have mentioned this in previous posts, but is there a particular reason why you are LBYM in retirement? I can certainly understand why someone in the accumulation phase might LBYM, but once retired not so much? It may simply be conservatism or worry about running out of funds. I understand this objective. On the other hand, if you simply don't want to spend more money because you don't think it would be enjoyable or morally correct, then I really don't get it. Anyway you are in a good position,I guess.
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Old 12-18-2013, 12:38 PM   #47
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You may have mentioned this in previous posts, but is there a particular reason why you are LBYM in retirement? I can certainly understand why someone in the accumulation phase might LBYM, but once retired not so much? It may simply be conservatism or worry about running out of funds. I understand this objective. On the other hand, if you simply don't want to spend more money because you don't think it would be enjoyable or morally correct, then I really don't get it. Anyway you are in a good position,I guess.
I am living the same, non-extravagant way in ER as I did when I was still working, either full-time or part-time. I resurrected some old hobbies after I switched to working part-time. But other than that, I don't spend a lot of money in general. The only way I could make a really big, desirable change to my life would be to move to a bigger apartment. But that would be costly (not hugely) but would require a lot of time and effort. Having moved several times in the 1980s, I would just as well not have to go through that again if I don't really have to.

But I know I have enough money to do whatever I want otherwise, without worrying about the cost. I just don't have anything big I want to do.
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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.

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Old 12-19-2013, 06:44 PM   #48
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The $ value of a pension can be calculated with an annuity calculator available on a lot of financial websites. (how many $ would it take to buy an annuity that would produce the same amount and features as the pension in question)

Once that is done it can be considered a financial asset along with everything else for FIRE purposes. (provided one is confident in the stability of the pension provider)

Or not. Depends on how you want to look at it. That's how I choose to look at it.
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So...I've been asking myself this same question for a while now (what is the value of my defined benefit pension plan). Most of the calculators I've been ask for a term in years. I've found it hard to put a number on that since a pension lasts until you "expire". I suppose 30 yrs is safe however.

Then another person said "oh, that's simple--just divide your annual pension by the return you would expect to get" on garden variety investments...or maybe a 5 yr CD".

For me that would be ~ $34,000/.03 ($34K @ 55 yrs old, hoping for 3% return on a 60/40 mix). So $1.13M? Really. Seems overstated. I"m a non-COLA pension.

So I still really don't have a number that I would put in a networth box. Numbers is hard
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