Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Is Saving not Spending but Contributing
Old 04-15-2019, 04:32 PM   #1
Thinks s/he gets paid by the post
Rianne's Avatar
 
Join Date: Aug 2017
Location: Champaign
Posts: 1,709
Is Saving not Spending but Contributing

A few of the RE calculators ask "savings rate" or contribution to portfolio. So, I enter total spending $100K/year. I'd like to know I can spend that much and be 100% safe in spending that much. I'll kick it up to $110, $120 as market improves.

We really only spend $70K/year. Does that $30K count as savings or contribution to the portfolio. The thing is, that money that we don't spend will stay invested. And those investments are kicking off dividends and we are reinvesting them.

I feel like the calculations are more complex than a simple spend/income/portfolio amount to begin with.
Do you really spend what you enter as "spend amount?" Or just testing the waters?
__________________

__________________
"If you want to go fast, go alone. If you want to go far, go together.
Rianne 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 04-15-2019, 06:49 PM   #2
Recycles dryer sheets
 
Join Date: Jul 2016
Location: Chicago
Posts: 133
I suggest you enter what you spend.

As far as "market improves", think market appreciates or grows. Hard to "improve" from being a few % from all-time highs.
I expect a pull-back at some point and think of spending in a range.
__________________

HarveyS is offline   Reply With Quote
Old 04-15-2019, 06:55 PM   #3
Thinks s/he gets paid by the post
 
Join Date: Jan 2018
Location: Tampa
Posts: 3,821
Some calculators ask for contributions for those effectively still working, but spending for those retired.
__________________
TGIM
Dtail is online now   Reply With Quote
Old 04-16-2019, 04:39 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 22,190
You are simply spending less so agree with entering what you actually spend.

Run both models, and compare results.

To me if the $100K model gives a green light it’s simply saying that you can spend that much if you want.

The $70K model just shows you any differences the lower spending makes over the long run.
__________________
Retired since summer 1999.
audreyh1 is online now   Reply With Quote
Old 04-16-2019, 05:55 AM   #5
Thinks s/he gets paid by the post
Jerry1's Avatar
 
Join Date: Nov 2014
Posts: 2,366
I do both. I put in what I actually spend as a starting point but the I bump it up until point of failure. This give me a sense of my cushion. I spend around $80K. Calculators so I’m good up to around $100K. Just a little bit of extra information to help me sleep well and to know I can splurge every now and then or handle an emergency. Don’t forget, your actual number needs to include lumpy expenses (e.g. a new car every 10 years) and taxes as you draw from your IRA/401K.
__________________
Every day when I open my eyes now it feels like a Saturday - David Gray
Jerry1 is online now   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


Similar Threads
Thread Thread Starter Forum Replies Last Post
Why low interest rates encourage saving, not spending HF63 Stock Picking and Market Strategy 18 05-11-2016 12:27 PM
Saving vs. Saving ProGolferWannabe FIRE and Money 37 07-07-2013 05:10 PM
Contributing to Roth IRA and Traditional IRA mrinvest Young Dreamers 18 11-22-2006 10:45 AM
Contributing to Roth IRAs while one of couple is FIRE'd LOL! FIRE and Money 4 06-26-2005 02:04 PM
Worried about over-contributing to 401k & Roth? soupcxan Young Dreamers 29 09-25-2004 03:25 PM

» Quick Links

 
All times are GMT -6. The time now is 07:03 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2019, vBulletin Solutions, Inc.