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View Poll Results: Which source provides the most retirement income for you?
Defined benefit plan, traditional pension 54 40.91%
Defined contribution plan, IRA, 401k, 403b etc 26 19.70%
Other taxable investments 41 31.06%
Real estate, reverse mortgage, rental income etc 4 3.03%
Social security 6 4.55%
Part time work, lets say less than 20 hours a week 1 0.76%
Voters: 132. You may not vote on this poll

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Old 11-17-2011, 08:03 PM   #41
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Originally Posted by arebelspy View Post
Surprised 0%, i.e. no one, is from real estate investments.

Though I guess most with rental income it would be a supplement, not the main income. And there are those that say you can't be retired if you own rentals.
I get $1200 a month in rent which will cover about a third of my expenses. It's critical to my ER success, but my DC plans will produce most of my income.
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Old 11-17-2011, 09:14 PM   #42
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Quote:
Originally Posted by nun View Post
I get $1200 a month in rent which will cover about a third of my expenses. It's critical to my ER success, but my DC plans will produce most of my income.
nun, IIRC you were going to retire in the UK. Will that make you an absentee landlord?

We have had trouble being that in the past. I can't imagine the headaches being a transatlantic absentee landlord would bring. Be wary.
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Old 11-17-2011, 09:17 PM   #43
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Old 11-17-2011, 09:57 PM   #44
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Originally Posted by Ed_The_Gypsy View Post
nun, IIRC you were going to retire in the UK. Will that make you an absentee landlord?

We have had trouble being that in the past. I can't imagine the headaches being a transatlantic absentee landlord would bring. Be wary.
Your memory is good! I'm planning to move to the UK at some point, but I'll probably spend the first few years of ER in the US collecting the rent. When I move to the UK I'll sell the house so I can buy a place over there and have a bit of equity left over
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Old 11-18-2011, 12:38 AM   #45
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Not being old enough (48 now) to collect anything from pension, SS, or IRA, all I have are my taxable investments to get me through the next 12 years. I have those 3 retirement income sources as my "reinforcements" waiting for me when I have unfettered access to them.
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Old 11-18-2011, 06:26 AM   #46
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Originally Posted by scrabbler1 View Post
Not being old enough (48 now) to collect anything from pension, SS, or IRA, all I have are my taxable investments to get me through the next 12 years. I have those 3 retirement income sources as my "reinforcements" waiting for me when I have unfettered access to them.
Your IRA is available for penalty free withdrawals using a 72t.
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Old 11-18-2011, 06:38 AM   #47
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I am not retired yet - but in my ER planning spreadsheet, taxable accounts provide most retirement income.
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Old 11-18-2011, 06:41 AM   #48
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Varies:
Age 56: DB- 53% DC- 33% SS- 14.1% (DW SSDI)
Projected Age 71: DB- 51% DC- 7.6% SS- 31.4%
Projected Age 86: DB- 34.1% DC- 21.5% SS- 44.4%

All projected values are inflation adjusted, COLA adjusted using ASSumptions.8>)

DC is tax deferred 401k, DB is pension, SS is social security
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Old 11-18-2011, 06:56 AM   #49
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Your IRA is available for penalty free withdrawals using a 72t.
I agree that the 72t rule allows for IRA withdrawals without penalty but the somewhat tricky rules for making those penalty-free withdrawals do not fit my definition of "unfettered."
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Old 11-18-2011, 09:33 AM   #50
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Estimates are 50% tax-deferred, 40% SS, and 10% non-COLA pension.
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Old 11-18-2011, 09:53 AM   #51
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Income (gross) in 2007 (pre credit crunch) before having any social security type pension.
DB (COLA protected) pension - 65%
Income from investments - 35%

Income (gross) in 2010, with all social security type pensions activated.
1) DB pensions - 66%
2) Social Security type pensions - 20%
3) Income from investments - 14%

All investments are in fixed rate bonds. There are no stocks, funds, etc., (and were rare in the past). That's just how I approach it. The loss in investment income has been offset by the newly aquired social security type pensions, for now. A quirk of timing.

2007 total spending (including tax) equaled the 65% figure of the DB pensions, therefore, no additional funds to increase savings (but all investment profits were re-invested).

2010 total spending (including tax) is 68% of total income. The majority of the 20% of income from 2) is now invested into the capital of 3). Of course, all profits from investments are still re-invested.

Whilst I understand the basics of this poll, I agree with some other posts. This poll is a good snapshot in time, but the situations are constantly changing and only reflect the current circumstances, not a life long stance.

We live a true 'replacement' lifestyle in retirement (perhaps, even 'replacement plus'). If current expenditures remained the same (no inflation), and the pensions in both 1) and 2) were to vanish completely tomorrow, the capital in 3) would only last us for 9 years. A 50% downsizing of our home (no mortgage) would release enough profits to last an additional 11 years. Therefore the DB pensions are (and will continue to be) my largest and most important source of income. I may not be totally dependent upon them now, but they allow investment for future years when the DB COLA factor will not have kept pace with the real increase in costs.

I barely qualified as having retired early, so very few posts on this site. But the perspective from life beyond the termination point (w*rk termination, that is) for someone not investing in the markets might be of interest to some. For those retiring today, it can be done. I believe those retiring in 20 years time face a far more difficult challange.
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Old 11-20-2011, 07:27 PM   #52
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42 and not FIRE'd yet, but planning for 5 - 8 more years unless I just get burned out....

I'm in the minority as I'm looking at rental & taxable to carry me from 47 to 60.

Currently, rentals cover about 50% of my current expenses. (Landlord, so semi-retirement when I pull the plug)

Taxable will provide 50% of my projected expenses. (SWR of 3%)

Small pension @ 55 will provide 15% cushion

SS @ 67 will provide 33% cushion

Both pension and SS - using spouse # in the event of my passing.

Yup, I'm probably working longer than I need and/or considered ultra conservative.
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Old 11-20-2011, 10:12 PM   #53
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I barely qualified as having retired early, so very few posts on this site. But the perspective from life beyond the termination point (w*rk termination, that is) for someone not investing in the markets might be of interest to some. For those retiring today, it can be done. I believe those retiring in 20 years time face a far more difficult challange.
Hey OAP, I keep running into you!
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Old 11-21-2011, 05:36 AM   #54
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Hey OAP, I keep running into you!
Is that a bad thing? At least you understand the reason for my comment "That's just how I approach it." From that perspective, the results of your poll are quite interesting.
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Old 11-21-2011, 06:32 AM   #55
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Whilst I understand the basics of this poll, I agree with some other posts. This poll is a good snapshot in time, but the situations are constantly changing and only reflect the current circumstances, not a life long stance.
Getting at the variations in income stream throughout ER would have been interesting, but it would have made the poll very complicated so I opted for the snapshot.

I my case when I ER I'll have taxable funds, but most of my income will come from gains in my tax deferred accounts that I'll 72T and then rent. I want to keep about 5 years of spending in taxable for emergencies. Once I reach 66 I'll have both UK and US SS and a small company pension that under current legislation will completely cover my expenses.
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Old 11-21-2011, 07:10 AM   #56
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Old 11-21-2011, 08:41 AM   #57
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Getting at the variations in income stream throughout ER would have been interesting, but it would have made the poll very complicated so I opted for the snapshot.
Additionally, the poll is mixed with those in retirement (such as me) and those still planning - not currently executing their plan.

Just a comment on any plan. Most plans are just that; they are not necessarily reality delayed.

For instance, DW/me "knew" that we would both retire (same age) in early 2007 at age 59. Well, I did, she didn't (still plugging away).

We both "knew" we would take SS at our FRA age (66). Well, after reading some articles on SS "techniques", after retirement but pre-SS, the "scheme of the moment" was to cover your bases by taking it at age 62, banking/investing (but not consuming) those proceeds, and if you made it to FRA age (or later), you could pay back and start receiving a higher monthly benefit. Well, you know how that turned out. The program was changed to only allow a 12-month payback period. Additionally, I was not fully aware of the benefit I could receive at age 66 from my wife's SS (50%), while allowing me to hold off till age 70, get the 8% bump (plus possible COLA), and ensure DW would have a benefit over two times her FRA rate assuming I lived till 70, and passed first. That's now our plan - different than what we planned for, before retiring.

The third "major" change was the decision to purchase a SPIA when I retired. While we knew the general idea that "annuities are bad", we did not really consider one till very close to retirement and looking at ways to fund our basic day-to-day needs rather than just portfolio withdrawls (no pension). With conversion of some of my deferred-tax (i.e. 401(k) & traditional IRA) covered that concern (rather than depend on "the market" to provide income), along with removing a substantial amount from future RMD calculations. Its worked out quite well. I made my own pension - but one with better options than a traditional pension would do.

Again, just a view from somebody who planned their retirement income but had major changes made to the plan after actually living in retirement. Change of any plan is normal, as we all know.
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Old 11-21-2011, 09:29 AM   #58
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My needs are few so I can live off of my pension. I ER'd 10 months ago and dipped into my savings about 2% to buy non-essentials. I'll probably do that indefinitely. (I see an iPad 3 April 2012. ) I plan for SS to cover healthcare expenses even after I am Medicare eligible so that will never be my primary source of income.

At age 72, I'll start spending.
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Old 11-21-2011, 12:45 PM   #59
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Since I'm retiring in a couple months, I responded based on our plan. It will be solely taxable investments initially.
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Old 11-21-2011, 01:34 PM   #60
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Had enough fun, so DH and I left megacorp at 49 in '96. No DB for us, but we always maxed out 401k, matched or not, and were very LBYM types. After tax investments provided 100% of expenses for 13 years, leaving 401k and IRA and Roths for later. Been converting IRAs to Roths over time to avoid some of the tax consequense at 70.5. Currently, SS covers most of our expenses, with the rest being met by after tax investments. Given the opportunity for a do-over, we'd delay taking SS, but that door is closed. Sigh.
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