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Old 03-18-2015, 11:37 AM   #41
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Originally Posted by Chuckanut View Post
IMHO, given the recent attacks on pensions already earned and the inability of our elected officials to reform SS while there is time to do it with less pain, I think having more in personal investments is a good idea.

Monitor and adjust.
I won't comment on US elected officials, but I do agree that having more in personal investments is always a good idea. Unfortunately not everyone is as motivated to save, invest and self-educate as the people on the board.
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Old 03-18-2015, 11:39 AM   #42
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Originally Posted by walkinwood View Post
I would not recommend using firecalc without close examination of the investment history it uses. Your investment characteristics and inflation history may not match it at all.
Agreed, especially if one is outside the U.S.
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Old 03-18-2015, 11:41 AM   #43
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I worked on my agency's budget for several years and took Federal budget analyst classes (more interesting than you'd think, to me anyway).

"Entitlement," from a budget analyst's perspective, has no positive or negative connotation. It just means an obligation which the government incurred according to some system of rules. If you qualify under those rules, and you apply, the government must pay you. In that respect, it's different from budget requests which every agency must justify to Congress every year.

Some entitlements (SS, Federal pensions, Medicare) receive recipient funding, while others (military pensions, SNAP benefits) do not. Professional and amateur politicians love to conflate "entitlement" (the budget term) with "entitled" (the attitude that I deserve some goodie, whether I paid into a fund or not). People are so vulnerable to being gulled this way, that the very fact that I mentioned military pensions and SNAP in the same sentence, probably riles up some people!

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Originally Posted by steelyman View Post
A problem with that term/word [entitlement] is that it has multiple definitions. It can be used to fit to one's agenda.
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Old 03-18-2015, 01:44 PM   #44
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My question is how many people on this board have been comfortable enough to retire without any safety net to catch them?

I feel a bit like retirement may be like being on the high wire without a safety net.
No safety net for me except for SS in here in the US. As I've said in other posts on this board, I worried a lot about having enough before I retired. Now that I've been retired for a few years, I don't worry about it at all.
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Old 03-18-2015, 02:22 PM   #45
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Back to the OPS first post. Decades ago, the retirement mantra was to develop "the three legged stool" for income streams (savings, pension and SSN). I think that has developed into a stool with more legs. Some use rental property, some use annuities (although the variable type is not typically recommended by those of us here on this forum), etc.

For myself mine are:
1) Savings and investments
2) Social Security
3) K1 income from a 60 year old family business that historically has paid out an income for the last 20 years (saved it!). Could be considered a pseudo-pension except it is not guaranteed, is a board decision every year and really can not be counted on.
4) Board fees (currently pays as much as my Social Security will pay me at age 62).
5) I have not ruled out an immediate income annuity Have been waiting for interest rates to rise. At this point, I consider it diversification rather than wondering if it is wise or not. I would not use more than 10% to 15% of my holdings.

I keep looking at rental property but truthfully would be horrible at it and do not want the headaches.

I suppose my (and others) last ditch safety net could also be "a reverse mortgage" if all else fails. But I have not planned for failure!
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Old 03-18-2015, 04:28 PM   #46
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I think diversified income streams along with low fixed expenses can be part of a good safety net. The diversification doesn't necessarily have to be in the form of a pension or SS. One could replace those purchased annuities.
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Old 03-23-2015, 09:47 AM   #47
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Originally Posted by Car-Guy View Post
No safety net for me except for SS in here in the US. As I've said in other posts on this board, I worried a lot about having enough before I retired. Now that I've been retired for a few years, I don't worry about it at all.

What's your annual SWR before SS and what is it projected to be once SS kicks in (and at what age)? I worry about having enough and just FIREd. Curious how much others need to feel safe and to reduce their worry.
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Old 03-23-2015, 11:32 AM   #48
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Retirement at age 53, and the safety net was going back to w*rk if necessary.
Health is safety net #1 from every standpoint. When we go to the mall or to businesses in town there are many older men and women, who are supplementing their retirement income. Not the worst thing, either physically or mentally. For us, it all worked out, but had something intervened, we were prepared, and would not have considered it a failure.
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Old 03-23-2015, 12:41 PM   #49
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Add me on the "no safety net" list.

That is, earning money is my safety net.

I won't have a pension or anything near what you could call SS - maybe something like $3k per year (no typo) when I'm 70 years old. In addition, I'm also single with no dependents.

I do live in a (more or less) free healthcare system.
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Old 03-23-2015, 12:51 PM   #50
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My biggest safety net is budget/expense cut. My would be ER budget contains a lot of good-to-haves I can reduce (golf, traveling, cash allowance to parents, house in Bay Area which I can downsize). The next safety net would be dying early .
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Old 03-23-2015, 02:45 PM   #51
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Quote:
Originally Posted by Amethyst View Post
I worked on my agency's budget for several years and took Federal budget analyst classes (more interesting than you'd think, to me anyway).

"Entitlement," from a budget analyst's perspective, has no positive or negative connotation. It just means an obligation which the government incurred according to some system of rules. If you qualify under those rules, and you apply, the government must pay you. In that respect, it's different from budget requests which every agency must justify to Congress every year.

Some entitlements (SS, Federal pensions, Medicare) receive recipient funding, while others (military pensions, SNAP benefits) do not. Professional and amateur politicians love to conflate "entitlement" (the budget term) with "entitled" (the attitude that I deserve some goodie, whether I paid into a fund or not). People are so vulnerable to being gulled this way, that the very fact that I mentioned military pensions and SNAP in the same sentence, probably riles up some people!

Amethyst

The irony of it all is the politicians doing the "conflating" (I like that word btw, almost as much as "unfettered") of entitlements should go ahead and throw their salary in as an entitlement too since they are receiving "government aide".


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