Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Scott Burns nails it
Old 08-11-2006, 08:26 AM   #1
Thinks s/he gets paid by the post
 
Join Date: Aug 2005
Posts: 1,375
Scott Burns nails it

...for his middle class/upper middle class readers. I bet this is a common situation in suburbia today, and Scott gives excellent, compassionate advice. I hope his column is carried in newspapers besides the Dallas Morning News.

http://tinyurl.com/n6kg2


__________________

__________________
You can't always get what you want, but if you try sometimes, you might find you get what you need.
astromeria 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!

Re: Scott Burns nails it
Old 08-11-2006, 08:36 AM   #2
Thinks s/he gets paid by the post
 
Join Date: Aug 2005
Posts: 2,056
Re: Scott Burns nails it

If you ever have trouble getting him on the Dallas Morning News, Scott Burns also shows up at http://www.uexpress.com/scottburns/
__________________

__________________
Andre1969 is offline   Reply With Quote
Re: Scott Burns nails it
Old 08-11-2006, 08:43 AM   #3
 
Posts: n/a
Re: Scott Burns nails it

Quote:
Originally Posted by astromeria
...for his middle class/upper middle class readers. I bet this is a common situation in suburbia today, and Scott gives excellent, compassionate advice. I hope his column is carried in newspapers besides the Dallas Morning News.

http://tinyurl.com/n6kg2



You wonder if people like this do the math at all. - But maybe they were projecting that they would get an average of 20% a year returns for life. They probably would be home free then.
__________________
  Reply With Quote
Re: Scott Burns nails it
Old 08-11-2006, 08:49 AM   #4
Thinks s/he gets paid by the post
 
Join Date: Aug 2005
Posts: 1,375
Re: Scott Burns nails it

I suspect they never "did the math," didn't even know what "the math" was, and don't even know what their returns are. Just attempting to continue their lifestyle without thinking about it. Presumably they're ~3 years into retirement with a nearly 10% WR and just now noticing it might be a problem--better a little late than very late or never!
__________________
You can't always get what you want, but if you try sometimes, you might find you get what you need.
astromeria is offline   Reply With Quote
Re: Scott Burns nails it
Old 08-11-2006, 09:03 AM   #5
 
Posts: n/a
Re: Scott Burns nails it

Quote:
Originally Posted by astromeria
I suspect they never "did the math," didn't even know what "the math" was, and don't even know what their returns are. Just attempting to continue their lifestyle without thinking about it. Presumably they're ~3 years into retirement with a nearly 10% WR and just now noticing it might be a problem--better a little late than very late or never!
Yup, if I were in their shoes at this time, I'd be executing the 'Trout Bum in trailer park down by the river' Lifestyle! 8)
__________________
  Reply With Quote
Re: Scott Burns nails it
Old 08-11-2006, 09:52 AM   #6
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,616
Re: Scott Burns nails it

Quote:
Originally Posted by astromeria
...for his middle class/upper middle class readers.
I bet he gets that question in a thousand e-mails/letters a week.

Kinda like this board's "Whaddya DO all day!?"

Apparently retirement is only for people who can do math. For everyone else, there's Social Security...
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Re: Scott Burns nails it
Old 08-11-2006, 09:59 AM   #7
Thinks s/he gets paid by the post
JPatrick's Avatar
 
Join Date: Jun 2005
Posts: 2,494
Re: Scott Burns nails it

Actually, Scotty gave them the good news. (sometimes called hope)
The bad news is that if we should see a 25% market decline these folks are toast no matter what they do.* In fact, toast would be a treat compared to all that cat food.

I'm not forecasting a 25% decline, everyone knows that's impossible
__________________
JPatrick is offline   Reply With Quote
Re: Scott Burns nails it
Old 08-11-2006, 10:26 AM   #8
Thinks s/he gets paid by the post
maddythebeagle's Avatar
 
Join Date: Jun 2005
Posts: 2,450
Re: Scott Burns nails it

I think he forgot a key solution (as used by some on this board)....to afford the Lexi/Mercury Mountaineers....send the spouse to work....
__________________
- Hurry! to the cliffs of insanity!
maddythebeagle is offline   Reply With Quote
Re: Scott Burns nails it
Old 08-11-2006, 10:28 AM   #9
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
Re: Scott Burns nails it

AARP needs more articles like this in their publications, instead of the goofy dreck they mostly publish.

__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Re: Scott Burns nails it
Old 08-11-2006, 10:51 AM   #10
Recycles dryer sheets
 
Join Date: Jun 2006
Posts: 104
Re: Scott Burns nails it

$1,000 a month car payment. Ouch.
__________________
IHateCNBC is offline   Reply With Quote
Re: Scott Burns nails it
Old 08-11-2006, 10:52 AM   #11
Thinks s/he gets paid by the post
 
Join Date: Aug 2005
Posts: 2,056
Re: Scott Burns nails it

I think that $1000 per month is for the Mountaineer and the mortgage, not two car payments. At least that's the way I read it.
__________________
Andre1969 is offline   Reply With Quote
Re: Scott Burns nails it
Old 08-11-2006, 10:58 AM   #12
 
Posts: n/a
Re: Scott Burns nails it

Quote:
Originally Posted by JPatrick
Actually, Scotty gave them the good news. (sometimes called hope)
The bad news is that if we should see a 25% market decline these folks are toast no matter what they do. In fact, toast would be a treat compared to all that cat food.

I'm not forecasting a 25% decline, everyone knows that's impossible
A 25% Market decline would not ruin them. A 4% WR has built into it a decline of probably greater than this.

What they have to do is get their spending under 4%, make sure their portfoilo is diversified (they never said how the $400K was invested other than Mutual Funds - Could be a Balanced one that contains Bonds)and they can weather market declines worse than this! - As long as they don't panic at the decline and put it into CDs.
__________________
  Reply With Quote
Re: Scott Burns nails it
Old 08-11-2006, 11:03 AM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
 
Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 5,880
Re: Scott Burns nails it

Quote:
You wonder if people like this do the math at all.
"Oh it's a math thing...now you tell us!"
__________________
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is offline   Reply With Quote
Re: Scott Burns nails it
Old 08-11-2006, 11:08 AM   #14
Recycles dryer sheets
 
Join Date: Jun 2006
Posts: 473
Re: Scott Burns nails it

Quote:
Originally Posted by Nords
Apparently retirement is only for people who can do math.
Math and history, I'd think. There were people in the late 1990s who could do the math, but knew little to no history and thought that double digit+ returns would continue forever.
__________________
Scrooge is offline   Reply With Quote
Re: Scott Burns nails it
Old 08-11-2006, 11:27 AM   #15
Thinks s/he gets paid by the post
JPatrick's Avatar
 
Join Date: Jun 2005
Posts: 2,494
Re: Scott Burns nails it

Quote:
Originally Posted by Cut-Throat
A 25% Market decline would not ruin them. A 4% WR has built into it a decline of probably greater than this.

What they have to do is get their spending under 4%, make sure their portfoilo is diversified (they never said how the $400K was invested other than Mutual Funds - Could be a Balanced one that contains Bonds)and they can weather market declines worse than this! - As long as they don't* panic at the decline and put it into CDs.
Of course you're assuming a wave of the wand makes them model money managers overnight.* My point is, if they continue anywhere near their present course, a 25% drop would spell huge trouble and fast.* Sure you can always revert to the magic 4%,* so long as there is 1$ in the stash you can withdraw 4%.* I think I saw an open spot down under the bridge today.
Seen it more than a few times
__________________
JPatrick is offline   Reply With Quote
Re: Scott Burns nails it
Old 08-11-2006, 11:58 AM   #16
Recycles dryer sheets
 
Join Date: Jun 2004
Posts: 229
Re: Scott Burns nails it

In my wildest dreams, I can't image retiring with this kind of debt! DH is retired and I'll be retiring in 2-1/2 years (working only for health insurance), and we'll be living debt free on about $2,500/month and it won't be painful for us.
__________________
Glo is offline   Reply With Quote
Re: Scott Burns nails it
Old 08-11-2006, 12:03 PM   #17
Recycles dryer sheets
 
Join Date: Apr 2005
Posts: 184
Re: Scott Burns nails it

I like Scott Burns columns.

I do "understand the math" but I gotta admit, when I first read the basic data of their situation - I thought "they are not in too bad shape".

I saw 68 years, 400 grand, modest house numbers - my "gut" figured they'd run out of time before *they run out of money.

Numbers say the opposite. * Numbers trump "gut".

The "joint life expectancy" creates the disconnect - I would never guess that 2 people at 68 need to *plan financially on 25 years.

As I typed that, I still can't believe it.

Facts trump "gut"......
__________________
Delawaredave is offline   Reply With Quote
Re: Scott Burns nails it
Old 08-11-2006, 12:07 PM   #18
Thinks s/he gets paid by the post
 
Join Date: Aug 2005
Posts: 2,056
Re: Scott Burns nails it

Aren't the people in this situation at least far out enough to see the trainwreck happening, and hopefully be able to avoid it? At this point they're still about $400K away from depleting their nest egg, and have at least caught it. What I can't understand is the people who would keep depleting it until there was nothing left and THEN cry for help.

Seems to me that unless you were practically gambling your money away, or making really stupid purchases, that these kind of "train wrecks" should be fairly easy to avert, as the warning signs are often years away, if you pay attention to them.
__________________
Andre1969 is offline   Reply With Quote
Re: Scott Burns nails it
Old 08-11-2006, 12:23 PM   #19
Thinks s/he gets paid by the post
 
Join Date: Nov 2005
Posts: 2,119
Re: Scott Burns nails it

Quote:
Originally Posted by Andre1969
Aren't the people in this situation at least far out enough to see the trainwreck happening, and hopefully be able to avoid it? At this point they're still about $400K away from depleting their nest egg, and have at least caught it. What I can't understand is the people who would keep depleting it until there was nothing left and THEN cry for help.

Seems to me that unless you were practically gambling your money away, or making really stupid purchases, that these kind of "train wrecks" should be fairly easy to avert, as the warning signs are often years away, if you pay attention to them.
Part time job? Walmart Greeter? McDonalds lunch worker?
Part time librarian? Even newspaper delivery in the mornings?
__________________
newguy88 is offline   Reply With Quote
Re: Scott Burns nails it
Old 08-11-2006, 12:29 PM   #20
Recycles dryer sheets
 
Join Date: Jun 2006
Posts: 473
Re: Scott Burns nails it

Quote:
Originally Posted by Delawaredave
I saw 68 years, 400 grand, modest house numbers - my "gut" figured they'd run out of time before *they run out of money.
Their house numbers are fairly modest, but they apparently spend a lot of money on, um, well, I am not sure what it is that they spend it on. But when you add up their SS ($21.6k/y), their regular monthly withdrawals ($24k/y) and their additional withdrawals ($15k/y), they are spending over $60K/y! That's a pretty extravagant lifestyle for a couple with a modest SS pension and $400k in savings.
__________________

__________________
Scrooge is offline   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
Scott Burns: The Critical 50s REWahoo Young Dreamers 50 07-21-2008 12:35 AM
Scott Burns burns Home Depot REWahoo Other topics 17 03-06-2007 10:09 PM
Scott Burns answers financial advisor's Vanguard questions Nords FIRE and Money 19 12-04-2005 12:11 AM
Scott Burn's Swan Song? Telly FIRE and Money 26 10-05-2005 01:58 PM
Scott Burns doesn't want us to retire! Telly FIRE and Money 27 11-06-2003 01:53 PM

 

 
All times are GMT -6. The time now is 02:32 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.