Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Old 10-26-2011, 02:06 PM   #61
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Mulligan's Avatar
Join Date: May 2009
Posts: 8,103
Originally Posted by Alan

I think this is why an individual's risk tolerance is so important in financial planning. Greg has a secure pension and knows that if the worst happens he should always have that, so he feels confident to have a very high equity ratio.

I also have have pensions but they are non-COLA and only covered 70% of post-retirement expenses when we ER'ed at age 55. My (our) personal risk tolerance means we have only 35% in equities with a lot of dividend producing funds to avoid, hopefully, having to sell off equities to meet our needs. Our e-fund will soon be 100% I-bonds after the last 2 of our 5% CD's mature in December. Our "cash" buffer is the VG short term bond fund that we tap from time to time through the year, and into which the quarterly and annual fund distributions go.
Alan, have you been in retirement long enough to notice the effect of inflation, in relation to its effect on the amount of your non COLA pension coverage of your monthly budget? My pension has been reduced to a light version before I even received my first COLA this January. So long term, I may need to plan better for it.

Mulligan 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 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!


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

Similar Threads
Thread Thread Starter Forum Replies Last Post
Income investing and total return investing. clifp FIRE and Money 18 09-03-2011 10:17 AM
Need cash out of my house with no income to verify. ijuba FIRE and Money 1 07-25-2011 11:32 AM
GAO Report on Retirement Income Purron FIRE and Money 5 07-17-2011 03:27 PM
What percent of my income should I be saving in order to FIRE? nico08 FIRE and Money 23 07-06-2011 12:03 PM

» Quick Links

All times are GMT -6. The time now is 09:01 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2019, vBulletin Solutions, Inc.