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some questions from a 55 yr old.
07-20-2010, 06:24 PM
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#1
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Full time employment: Posting here.
Join Date: Dec 2006
Location: chicago burbs
Posts: 806
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some questions from a 55 yr old.
Just curious to get people's thought s on the following:
- a swr for a 55 yr old with the following AA:
50% Equity Funds (of which 12.5% in int'l)
12% TIPS Fund
20% Bond Funds (mostly intermediate)
18% cash
- also, how would one enter the above AA into the FIRECALC??
Thanks in advance .
Golfnut.
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07-20-2010, 06:52 PM
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#2
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 4,391
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When do you plan on Dying ?
For a 30 year retirement a SWR around 4% is reasonable (less investment fees).
I would first run FIRECALC with the total market option. FIRECALC doesn't model foreign equities, TIPS, or MM (cash) accounts so you'll have to choose whatever you feel is closest.
I expect that FIRECALC will give you a SWR around 4% (including investment fees). Keep in mind that FIRECALC is just a rough guide. Nobody really knows what the future holds. So detailed modeling to the nth decimal isn't reasonable. Just take the result as perhaps the kind of SWR that you could use.
Lets us know what you discover.
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07-20-2010, 07:19 PM
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#3
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Full time employment: Posting here.
Join Date: Dec 2006
Location: chicago burbs
Posts: 806
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Quote:
Originally Posted by MasterBlaster
When do you plan on Dying ?
For a 30 year retirement a SWR around 4% is reasonable (less investment fees).
I would first run FIRECALC with the total market option. FIRECALC doesn't model foreign equities, TIPS, or MM (cash) accounts so you'll have to choose whatever you feel is closest.
I expect that FIRECALC will give you a SWR around 4% (including investment fees). Keep in mind that FIRECALC is just a rough guide. Nobody really knows what the future holds. So detailed modeling to the nth decimal isn't reasonable. Just take the result as perhaps the kind of SWR that you could use.
Lets us know what you discover.
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Bases on your suggestions, it appears a 3.25 swr works for a 40 yr investment period and leave about $130,000 at the end.
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07-21-2010, 07:41 AM
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#4
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 4,391
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That dovetails with a number of acedemic studies. Here are some of Bernstein's charts for some mixed stock-bond portfolio's:
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07-21-2010, 12:26 PM
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#5
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Thinks s/he gets paid by the post
Join Date: Jan 2008
Posts: 1,671
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Quote:
Originally Posted by golfnut
Bases on your suggestions, it appears a 3.25 swr works for a 40 yr investment period and leave about $130,000 at the end.
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What is your plan if you live to 100?
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07-21-2010, 12:36 PM
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#6
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Full time employment: Posting here.
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I better be gone by 95 or I'll be SOL !! In other words, no plans on living beyond 95 nor do I want to (I think).
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07-21-2010, 12:40 PM
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#7
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Thinks s/he gets paid by the post
Join Date: Jul 2009
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Quote:
Originally Posted by golfnut
no plans on living beyond 95 nor do I want to
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At 94 you may change your mind.
__________________
And if I claim to be a wise man, it surely means that I don't know.
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07-21-2010, 12:42 PM
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#8
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Thinks s/he gets paid by the post
Join Date: Jul 2006
Location: Denver
Posts: 3,519
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while you're in this phase - modeling your SWR - you may want to try out the free ESPlanner (esplanner.com). Read some of the papers there too.
There is a very dense book & calculator by Otar at otar retirement calculator
(I have't tried the calculator, but the book is worth the slog)
All the best!
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07-21-2010, 01:31 PM
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#9
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Recycles dryer sheets
Join Date: Aug 2009
Location: Southern California
Posts: 489
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07-21-2010, 05:46 PM
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#10
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Full time employment: Posting here.
Join Date: Dec 2006
Location: chicago burbs
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Quote:
Originally Posted by Retire2014
+1
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If my brain is still functioning.
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07-21-2010, 05:55 PM
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#11
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Recycles dryer sheets
Join Date: Aug 2009
Posts: 348
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based on your name when your swing goes it is probably a good time to with it...
__________________
I am FIRE'd... :)
contract on the house, bought an RV and now traveling across America
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07-21-2010, 06:26 PM
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#12
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Full time employment: Posting here.
Join Date: Dec 2006
Location: chicago burbs
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I'm hoping to be a better golfer in early retirement than I am now . I'll be practicing and playing more!
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07-21-2010, 06:44 PM
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#13
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 9,072
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Quote:
Originally Posted by golfnut
I'm hoping to be a better golfer in early retirement than I am now . I'll be practicing and playing more!
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That's what I was hoping. Actually, I am a little better. But I don't practice that much, just play.
__________________
Retired 3/31/2007@52
Investing style: Full time wuss.
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07-22-2010, 09:37 AM
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#14
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Thinks s/he gets paid by the post
Join Date: Jan 2008
Posts: 1,671
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I do taxes for TaxAide. This year I had a couple come in -- he is 94, she 93. Up until this year he has been doing his own taxes. This year he admitted it had reached a point where it was a bit too complicated for him. He and his wife looked pretty spry.
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