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View Poll Results: How much of your retirement income comes from "guaranteed" sources?
0% to 25% 83 35.62%
26% to 50% 39 16.74%
51% to 75% 52 22.32%
76% to 100% 59 25.32%
Voters: 233. You may not vote on this poll

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Old 09-13-2015, 06:46 PM   #41
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DH's pension (state pension system for municipal employees, 3% COLA) covers 115% of our living expenses. Then we have some PenFed CDs that add another 4%. It's not a huge pension and we don't have all that much in CDs, it's just that our cost of living is fairly low. That's the "guaranteed" income.

Anything extra just gets saved because stuff breaks and sh!t happens....meaning that as we get older medical expenses come up and our house needs more work.

Still coming out ahead.

We were very surprised that DH was able to retire at 55, we could live as comfortably as when he worked and still be able to save anything. We live off the pension, save the extra, and my PT income (not guaranteed) goes to savings, usually my Roth IRA or the HSA.

I'm 60 and I'll consider SS at 62. I don't want to take it until Medicare age of 65 at the soonest and most likely will wait until my FRA of 66 and 2 months.
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Old 09-13-2015, 08:24 PM   #42
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Difficult to answer. The current plan has us at about 30% "guaranteed" from age 62 to 70 when SS would be collected. After 70 we would probably be looking at just about the break point in the poll, 75%. If we were to collect SS at 62, then we would be about 55%. So, depending on the scenario, I could fit into 3 of the four buckets. Currently, DW is still bringing in an income, so we are at maybe 8%, due to my collecting a small pension.

I'll check back in 10 years and let you know.
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Old 09-13-2015, 08:57 PM   #43
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0% to 2% now w/o SS but with ACA subsidy, then about 20% when SS starts in about 4-5 yrs.
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Old 09-13-2015, 10:34 PM   #44
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Not retired until 2017 but will have 0% coming from some type of "guaranteed", everything will come from stocks and bonds.
Have a lump sum pension which will just go into the market (pension option has no COLA), a 401K which will stay in the market and our taxable account which is cash and market investments (taxable account to cover us from 2017 to 2027 when 401K and Lump will be used). Will not really get much from SS (maybe beer money? as I have worked overseas and not paid into it since leaving the military (not retired)).
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Old 09-13-2015, 11:14 PM   #45
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No income from guaranteed sources until SS kicks in, which is still many, many years away.
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Old 09-13-2015, 11:24 PM   #46
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In 22.5 years, 100% of our living expenses will be covered by my reduced SS, his FRA SS, my small pension, and one rental income unit. We will be 62 and 79.5 years old then. Of course that is a long ways away, so I am sure something will change by then. My pension is probably the highest risk asset I have as my state's elected officials are trying to run the state pension system into the ground on purpose. The pension is non-Cola'd and I have to put in 6% of my income.

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Old 09-14-2015, 07:26 AM   #47
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15 years from ss (70) which will cover > 100% of non-discretionary expenses. We have a substantial non-discretionary including travel that we hope to fund with our investments.


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Old 09-14-2015, 08:46 AM   #48
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Once SS starts for both of us and a small pension for DW, we should be over 50%, but thats still a few years down the road.
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Old 09-14-2015, 09:49 AM   #49
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Planning on retiring next year...0% will be guaranteed for the first 15-20 years of retirement.

SS will be our only guaranteed income.
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Old 09-14-2015, 10:25 AM   #50
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I have distinguished between income and budget. Budget sources
-Social Security
-Guaranteed Pensions
-Retirement Accounts mandatory withdrawals
Total is between 75% and 100% of our current retirement expenses.

Our total income is much higher so the percentage would be less. I have not included bonds in the base budget since their total returns are volatile.
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Old 09-14-2015, 10:39 AM   #51
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. . . how much of people's income comes from market returns (dividends, capital gains, sale of principal) and how much from "guaranteed" income streams not directly related to the stock or bond markets, like SS, pensions, SPIA, CD interest and perhaps even rent.
I'd quibble with the notion that income from rental properties are somehow more "guaranteed" than dividends. Vacancies, cash flow disruptions from repairs, etc . . . But, back to our regularly scheduled discussion.
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Old 09-14-2015, 10:52 AM   #52
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I'd quibble with the notion that income from rental properties are somehow more "guaranteed" than dividends. Vacancies, cash flow disruptions from repairs, etc . . . But, back to our regularly scheduled discussion.
Yeah the stability (or not) of rentals depends on a lot of factors. I suppose I'm biased because I've rented out an apartment for 18 years without a break in rent and I'd argue that with a signed lease you know what your income will be for the next year. With dividends it might be 3%......but 3% of what?
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Old 09-14-2015, 10:58 AM   #53
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It seems everybody has their own definitions of secure versus insecure. There are risks associated with every source of funds, but some are less risky than others. The commentary clarifies what each of us means by our answers. And the answers are interesting. I'm happy knowing that 45% of my funds come from less insecure sources and I estimate a 3.5% WR from mutual funds in our early retirement years. More "secure" and insecure sources will drop in ~10 years from now.
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Old 09-14-2015, 11:12 AM   #54
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0% now, but when annuity and SSI kick in (14 years) nearly 100%! Overall 45 years of the plan, 60%.


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Old 09-14-2015, 11:31 AM   #55
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100% from my DB Federal pension, covers living expenses & savings. I have a DC that I left in the Thrift Savings Plan (TSP).
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Old 09-14-2015, 12:29 PM   #56
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A theme that jumps out at me is frugality. To successfully ER it helps that you LBYM while working so you can save aggressively and them when you retire secure income streams like SS cover a large proportion of your expenses. If you are frugal I think it gives you the confidence to retire and you're probably the sort of person who is good with budgets. So frugality gives you both the tools and the finances to retire.
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Old 09-14-2015, 12:45 PM   #57
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About a 55/45 split for me.
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Old 09-14-2015, 12:57 PM   #58
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I'd quibble with the notion that income from rental properties are somehow more "guaranteed" than dividends. Vacancies, cash flow disruptions from repairs, etc . . . But, back to our regularly scheduled discussion.
I see your point but it is very situational. I'll be signing a lease extension this week for a single tenant commercial building where the tenant has been in place for over 30 years. OTOH, BIL has tenants in and out of his residential rental like a revolving door.
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Old 09-14-2015, 02:14 PM   #59
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Planning for about 40% prior to SS in the form of military pension.
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Old 09-14-2015, 02:27 PM   #60
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By deferring SS as long as we can, we will be able to cover 100% of our "normal" spending with SS after age 70.

I also have a non-COLA'd pension. When I retired at 59, it covered 100% of our "normal" spending. However, it shrinks every year, so it's hard to determine an average prospectively.

Our actual spending, which may include travel, gifts, a new car, a move to a new house, or nursing home expenses, is unpredictable. So it's hard to calculate a percent of that number.
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