Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 07-07-2016, 11:42 AM   #61
Moderator Emeritus
laurence's Avatar
 
Join Date: Feb 2005
Location: San Diego
Posts: 5,227
Quote:
Originally Posted by haha View Post
I wish you would quote some of these people saying this all the time.

Ha
All right, allow my slight exaggeration as youthful indiscretion, but I was reading a thread the other day where people were stating their projected withdrawal rate was 3% or even 2%, and only a couple of posts pointing out how conservative that was.
__________________

__________________
laurence 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 07-07-2016, 11:47 AM   #62
Thinks s/he gets paid by the post
RobbieB's Avatar
 
Join Date: Mar 2016
Location: Central CA
Posts: 2,196
There is that, the age difference. There is a big difference that way I look at stuff at 61 vs the way a "real early" retiree (say 40) looks at stuff. He's got 20 more years of uncertainty. Which is a lot, not to mention a long way to SS and medicare.

So yeah, we are all different and I'll be another that kicks with a big stash left I'm sure. I just want to make sure it's not too big. I'm not a fan of counting it. Id rather ride it or eat it or drink it or walk on it or fish the river on it.
__________________

__________________
Retired at 59 in 2014. Should have done it sooner but I worried too much.
RobbieB is offline   Reply With Quote
Old 07-07-2016, 12:02 PM   #63
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,123
Quote:
Originally Posted by W2R View Post
... I can't even imagine the expense, worries and logistics of taking care of a second home from hundreds of miles away. Not my cup of tea, even though I could easily afford to buy a second home.
Homes can be a money pit. This applies to one's main home too. So why don't we all live in tiny homes? It all depends on whether one gets enough out of something to feel that it is worthwhile. However, a person's feeling changes with time too. I have seen more than one poster talk of selling the 2nd home because he/she is done with it. Donheff is a recent one, but kaudrey sold her weekend cabin after having it for not very long (I still remember when she talked about working OMY in order to have it - my memory can be so good it scares me).

At some point, I may change my mind. Life situation changes. I don't have my life charted out with Microsoft Project like some people seem to do.

Quote:
Originally Posted by travelover View Post
Yup, everyone draws the line for themselves. That's why I said "YMMV" in my earlier post. Plus, I don't really care for seafood.
I raised my children feeding them seafood. At some point, they changed. My daughter will not touch any seafood now, but my son still eats fish filet and crab. No shrimp or lobster though. Fine. They miss out.

Quote:
Originally Posted by RobbieB View Post
There is that, the age difference. There is a big difference that way I look at stuff at 61 vs the way a "real early" retiree (say 40) looks at stuff. He's got 20 more years of uncertainty. Which is a lot, not to mention a long way to SS and medicare.

So yeah, we are all different and I'll be another that kicks with a big stash left I'm sure. I just want to make sure it's not too big. I'm not a fan of counting it. Id rather ride it or eat it or drink it or walk on it or fish the river on it.
If the market crashes and takes away 1/2 of your stash, will you miss it?
__________________
"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky
NW-Bound is offline   Reply With Quote
Old 07-07-2016, 12:03 PM   #64
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Second City Land
Posts: 23,733
Quote:
Originally Posted by laurence View Post
All right, allow my slight exaggeration as youthful indiscretion, but I was reading a thread the other day where people were stating their projected withdrawal rate was 3% or even 2%, and only a couple of posts pointing out how conservative that was.
That is also the case with some FAs that blog, such as Wade Pfau and William Bernstein, who suggest future returns will be much lower and recommend withdrawal rates around 3%, or even less.
__________________
MichaelB is offline   Reply With Quote
Old 07-07-2016, 12:21 PM   #65
Thinks s/he gets paid by the post
RobbieB's Avatar
 
Join Date: Mar 2016
Location: Central CA
Posts: 2,196
Quote:
Originally Posted by NW-Bound View Post
If the market crashes and takes away 1/2 of your stash, will you miss it?
Yeah, I'd miss it and that could cause a "adjustment" to my plans.

But I'm really not worried about that. The market has already crashed to that degree with no effect on my finances. My house lost half its value and so did my investments. Guess what they're worth now?

Don't worry, be happy and smoke 2 joints -
__________________
Retired at 59 in 2014. Should have done it sooner but I worried too much.
RobbieB is offline   Reply With Quote
Old 07-07-2016, 12:22 PM   #66
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2013
Posts: 5,147
Quote:
Originally Posted by laurence View Post
All right, allow my slight exaggeration as youthful indiscretion, but I was reading a thread the other day where people were stating their projected withdrawal rate was 3% or even 2%, and only a couple of posts pointing out how conservative that was.
To add to MichaelB's list, other financial financial pundits like Bogle and Shiller are expecting low investing returns by historical standards in the coming decade or so. If they are right, 4% withdrawal rates would be on the high side.
__________________
Even clouds seem bright and breezy, 'Cause the livin' is free and easy, See the rat race in a new way, Like you're wakin' up to a new day (Dr. Tarr and Professor Fether lyrics, Alan Parsons Project, based on an EA Poe story)
daylatedollarshort is offline   Reply With Quote
Old 07-07-2016, 12:24 PM   #67
Moderator Emeritus
laurence's Avatar
 
Join Date: Feb 2005
Location: San Diego
Posts: 5,227
Quote:
Originally Posted by MichaelB View Post
That is also the case with some FAs that blog, such as Wade Pfau and William Bernstein, who suggest future returns will be much lower and recommend withdrawal rates around 3%, or even less.
Yeah I've seen that, and I think it's something to really ponder if you are retiring in your early 40's. Selfishly I just view the time horizon of when we are income/work free at 55-56 years of age and see it as overly cautious for the shorter time horizon. But we are planning to pay off the rental so we have our basic income covered, is that cheating?
__________________
laurence is offline   Reply With Quote
Old 07-07-2016, 12:26 PM   #68
Full time employment: Posting here.
 
Join Date: Feb 2014
Posts: 985
I have a pension with SS, these create a floor of income. By taking them as late as possible it maximizes my personal safety net. Drawing down principal isn't as scary with a net set up. I can see the case for an annuity starting at 75 for those without a pension.
__________________
jim584672 is offline   Reply With Quote
Old 07-07-2016, 01:35 PM   #69
Full time employment: Posting here.
 
Join Date: Mar 2015
Location: philly
Posts: 775
Quote:
Originally Posted by laurence View Post
This site is full of intelligent, insightful people who help me stay on the path to ER, but I definitely think there is a little too much fear and this article is consistent with that. People are on here all the time saying, "I've got 3 million plus a pension and my house is paid off, I'm 65, I think I need to work another 5 years, thoughts?"

o!
lol, my late husband was Portuguese and he had a saying, "Americans live to work while everyone else works to have a life". I find there is a big kernel of truth to that. Rarely do I see post (and I admit that I'm new here so maybe I'm missing them) about anyone enjoying their money, and god forbid you admit to buying something "frivolous" such as a boat but it seems that it's all so when we get old and broke down we'll have a nice nursing home. Don't get me started on 95% of the financial advice I see on the net. they all start off with some story of a older worker who is going to be forced onto the streets.

Experience also colors one's judgement. My husband, my baby brother and my best friend all died within the last 4 years ALL before the age of 56. so all the sacrificing and denial did not do them a bit of good,although we did blow a wad of cash on my brothers casket since he was retired navy, we got a lot of fancy navy emblems on the box. So not spending money because I may need it when I'm 90 has absolutely no weight with me. not gonna do it, so in that respect I'm the "odd duck" on these boards. I've always responded better to "rewards" than to "doom".
__________________
My darling girl, when are you going to realize that being "normal" is not necessarily a virtue? it sometimes rather denotes a lack of courage~Aunt Francis
bclover is offline   Reply With Quote
Old 07-07-2016, 01:38 PM   #70
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,123
Quote:
Originally Posted by jim584672 View Post
I have a pension with SS, these create a floor of income. By taking them as late as possible it maximizes my personal safety net.
That's the common argument.

Quote:
Drawing down principal isn't as scary with a net set up.
I have been debating this part with myself. What money is mine, I have some control over. What money SS gives me, that's really the government money. They can change it as they see fit. A US Supreme Court has said so in a lawsuit a long time ago.
__________________
"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky
NW-Bound is offline   Reply With Quote
Old 07-07-2016, 01:41 PM   #71
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,123
Quote:
Originally Posted by bclover View Post
lol, my late husband was Portuguese and he had a saying, "Americans live to work while everyone else works to have a life". I find there is a big kernel of truth to that. Rarely do I see post (and I admit that I'm new here so maybe I'm missing them) about anyone enjoying their money, and god forbid you admit to buying something "frivolous" such as a boat but it seems that it's all so when we get old and broke down we'll have a nice nursing home. Don't get me started on 95% of the financial advice I see on the net. they all start off with some story of a older worker who is going to be forced onto the streets...
You definitely have not been here long enough. Man, people are splurging like crazy. It's just that we are a bunch of reserved people who do not want to be called braggarts, but boy some of them do spend.

His and her Teslas, 4 or 5 homes, spending a couple of months in Europe? That's not enough spending for you?
__________________
"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky
NW-Bound is offline   Reply With Quote
Old 07-07-2016, 01:47 PM   #72
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 41,375
Quote:
Originally Posted by NW-Bound View Post
His and her Teslas, 4 or 5 homes, spending a couple of months in Europe? That's not enough spending for you?
Hey, it isn't all wine and roses. My Ferrari was repossessed.
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension

REWahoo is offline   Reply With Quote
Old 07-07-2016, 01:49 PM   #73
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 9,671
Quote:
Originally Posted by NW-Bound View Post
You definitely have not been here long enough. Man, people are splurging like crazy.
For sure . I bought some clothes at the Salvation Army and didn't even wait until Wednesday's Half Off for Senior's Day.
__________________
Yes, I have achieved work / life balance.
travelover is offline   Reply With Quote
Old 07-07-2016, 01:49 PM   #74
Full time employment: Posting here.
 
Join Date: Mar 2015
Location: philly
Posts: 775
Quote:
Originally Posted by NW-Bound View Post
You definitely have not been here long enough. Man, people are splurging like crazy. It's just that we are a bunch of reserved people who do not want to be called braggarts, but boy some of them do spend.

His and her Teslas, 4 or 5 homes, spending a couple of months in Europe? That's not enough spending for you?
Actually that does make me kinda happy, it's actually not the "what" because everyone has their own "vices", and I know I've got goofy vices that I spend money on, it's more of some times it seems (just to me) that everyone has saved this money simply so they will have a nice tricked out nursing home.
__________________
My darling girl, when are you going to realize that being "normal" is not necessarily a virtue? it sometimes rather denotes a lack of courage~Aunt Francis
bclover is offline   Reply With Quote
Old 07-07-2016, 01:50 PM   #75
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,123
Quote:
Originally Posted by REWahoo View Post
Hey, it isn't all wine and roses. My Ferrari was repossessed.
You could have splurged on consumables instead. What would be there for them to repossess?
__________________
"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky
NW-Bound is offline   Reply With Quote
Old 07-07-2016, 01:51 PM   #76
Thinks s/he gets paid by the post
 
Join Date: Jun 2003
Location: Historic Florida
Posts: 1,480
Quote:
Originally Posted by bclover View Post
lol, my late husband was Portuguese and he had a saying, "Americans live to work while everyone else works to have a life". I find there is a big kernel of truth to that. Rarely do I see post (and I admit that I'm new here so maybe I'm missing them) about anyone enjoying their money, and god forbid you admit to buying something "frivolous" such as a boat but it seems that it's all so when we get old and broke down we'll have a nice nursing home. Don't get me started on 95% of the financial advice I see on the net. they all start off with some story of a older worker who is going to be forced onto the streets.

Experience also colors one's judgement. My husband, my baby brother and my best friend all died within the last 4 years ALL before the age of 56. so all the sacrificing and denial did not do them a bit of good,although we did blow a wad of cash on my brothers casket since he was retired navy, we got a lot of fancy navy emblems on the box. So not spending money because I may need it when I'm 90 has absolutely no weight with me. not gonna do it, so in that respect I'm the "odd duck" on these boards. I've always responded better to "rewards" than to "doom".
Hear Hear!!!!! Al La, take SS when YOU think you should not when others think you ought to.
__________________
"Arguing with an Engineer is like rolling in the mud with a pig. Just remember that the pig likes it."
ShokWaveRider is offline   Reply With Quote
Old 07-07-2016, 01:52 PM   #77
Recycles dryer sheets
 
Join Date: Sep 2011
Location: MSP
Posts: 266
Quote:
Originally Posted by NW-Bound View Post
I still remember the time we stopped by St. Thomas, and ate crab dumped on a table over butcher paper at a restaurant on the pier. Came back to my rental car and found a parking ticket due to overtime parking. I told my wife no way I was going to pay that ticket. They never tracked me down and hassled me about it.

Do they have a better system to track parking violators now, I wonder?

Well I remember some places doing a pretty good job of that even back then. In the mid 90's I thought I could get away with something similar in Christchurch, NZ. A couple of months later my credit card was charged via the rental car company. And it wasn't cheap.
__________________
UpAnchor is offline   Reply With Quote
Old 07-07-2016, 02:00 PM   #78
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,123
Quote:
Originally Posted by NW-Bound View Post
If the market crashes and takes away 1/2 of your stash, will you miss it?
Quote:
Originally Posted by RobbieB View Post
Yeah, I'd miss it and that could cause a "adjustment" to my plans...
Well, some people here "pre-adjust" their spending to 1/2 of their stash. That way, nothing changes when the sky falls. It won't hit their head because they are already walking on their knees.
__________________
"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky
NW-Bound is offline   Reply With Quote
Old 07-07-2016, 02:00 PM   #79
Thinks s/he gets paid by the post
 
Join Date: May 2014
Posts: 2,750
In the past 2 years since I retired our assets are pretty much unchanged. I'd really prefer for them to increase, but selling and downsizing came with a heavy out-of-pocket cost. Would I go back and NOT fully enclose the screened-in porch off our kitchen facing the lake for $26K? Heck, no. Same with all our travel. DH, age 77, just had a vertebroplasty after a fall last week and, although it's reduced his pain, it may take awhile to see the full extent of the improvement and he may not get back to his pre-fall state. If he doesn't, well, we have lovely memories of all the trips we've taken together so far in the 19 years we've been together.

I can understand wanting to have a big "pile", though. I once got into an argument with my Economics professor in college. He said that money had no utility; its utility was in what it could buy. To me, it's a security blanket.
__________________
athena53 is offline   Reply With Quote
Most retiree will never draw down their portfolio?
Old 07-07-2016, 02:10 PM   #80
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Mulligan's Avatar
 
Join Date: May 2009
Posts: 7,142
Most retiree will never draw down their portfolio?

Quote:
Originally Posted by ExFlyBoy5 View Post
That's what I have been telling my Dad. He seems a bit frustrated at the amount of $ he has accumulated over his life and feels like there is nothing he wants to do with it. He doesn't express much regret, but I do know he wishes he had traveled more before Mom got sick. But, as I remind him, they traveled A LOT before and after he retired, and I think that they had slowed down on that considerably a few years before Mom wasn't able to travel (and enjoy it). I think it's good he has a good amount of $, because if he gets ill, he has the means to stay in the home for a long while and I know that is what is most important to him.


That is all my dad does it count it and save it in case either "goes into the home". Anytime I suggest him to splurge on something all he says is "Im not doing it, you don't know how hard I worked for my money".


Sent from my iPad using Tapatalk
__________________

__________________
Mulligan is offline   Reply With Quote
Reply

Tags
retirement spending


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
Are any of you rethinking how you draw down your 401Ks misty57 FIRE and Money 12 05-19-2011 01:47 PM
Cut back wife's 403b while I draw down 401k? bob boag FIRE and Money 2 04-06-2011 07:19 PM
New thoughts on the draw down phase walkinwood FIRE and Money 30 03-29-2011 06:38 AM
Worst Draw-Down haha FIRE and Money 11 02-11-2005 08:21 AM

 

 
All times are GMT -6. The time now is 02:36 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.