Sources of retirement income

[bbbamI]

That sure is one big profile you got there...Wahoo...

 

[Moemg]

Speedo? Speedo? I don't need no stinkin' Speedo...

Yikes , You are not embarrassing this forum by wearing boxers are you

 

[Radiophilejapan]

Retired, age 62:

Social Security	25%
Wellesley dividends	30%
IRA withdrawals	20%
Nude modeling income	10%
"Will work for food" solicitations	8%
Blood plasma sales	2%
Medical research income (chigger itch study participant)	2%
Aluminum can redemptions	2%
Fire ant pelt sales	1%

And it does add up to 100%. Maybe he is serious!

 

[NW-Bound]

May get higher income by combining nude modeling with chigger itch study?

 

[Rambler]

"Not so young anymore" dreamer. Age 47. Two years ago I was targeting Friday this week as my FIRE date (day before DD's HS graduation - or perhaps the end of the month). Mr Market kinda got in the way of that plan, and megacorp asked me to stick around, so I agreed (but would most likely survive ok if I left now).

Targeting no capital gain withdrawls. Cap gains distributions will be re-invested. If the interest on my Munis hold, and assuming about 2% average dividends on my equity holdings, then:


75% muni bond interest (I hold the bonds, not bond funds)
25% equity (incl small amount of REIT) dividends

Was targeting AA of 50/45/5, but I may end up going with 45/45/10, we'll see how things unfold on various fronts.

The plan shows a 3.5% cash throw total, but I am targeting a 3% (or hopefully less) SWR for the first few years. Whatever cash is thrown off in excess of that 3% will be re-invested in the earliest years. If my investent balance grows faster than inflation (and I keep my AA up properly) then I may boost my WR a little after a few years of FIRE experience.

Based on the above, I will have a very small, if any, tax bill. If SS is still around in 15 years, I am very likely to take it at 62, reduced benefit notwithstanding. I will be icing on the cake.

R

 

[hellbender]

Federal Pension

Retired, Age 55

Federal Pension, Full COLA: 100%

 

[Stevewc]

Retired-Age 48, 2008 actual numbers:

48% Tax-free interest income
32% Taxable dividend & interest income
15% Taxable option premium income
6% Salary from p-t job (also investor in company-didn't intend to "work")

"Net Income" 25% of total. In other words, I spent 75% of the income.

Hello 45th,
I'm not yet retired, so still working on the best way to fund my retirement. I noticed you mention 48% Tax-free interest income. If you don't mind me asking, are you accomplishing this feat with muni bonds? If so do you use bond funds or individual bonds.
Very interested in muni's & trying to learn,
Thanks Steve

 

[ziggy29]

Retired, Age 55

Federal Pension, Full COLA: 100%

Ah, CSRS. Those were the days...

 

[freebird5825]

Hello 45th,
I'm not yet retired, so still working on the best way to fund my retirement. I noticed you mention 48% Tax-free interest income. If you don't mind me asking, are you accomplishing this feat with muni bonds? If so do you use bond funds or individual bonds.
Very interested in muni's & trying to learn,
Thanks Steve

I'm a muni lover myself (VWAHX, VNYTX).
There's a past thread that went wended its way into munis (and a few other things).
http://www.early-retirement.org/forums/f28/where-to-put-wellesley-42331.html
See if that helps you out.

 

[OldGuy]

Retired 2001 (now 63)
DW retired 2004 (now 60)

Income measured against aggressive '09 expense budget:

COLA'd pensions - 62.6%
non-COLA'd pension - 2.4%
SS - 19.1%
Div/withdrawals - </= 15.9% (as needed; our incentive to LBYB[B=budget])

 

[bongo2]

This thread is illustrating an interesting disconnect that I've noticed on this forum for many years: most of the retired members use pensions and social security for a large portion of their income; most of the young dreamers are planning on retireing with neither of those things.

 

[Walt34]

Retired

Pension (COLA) - 65% for now
2nd job - 45% most of which we're saving

At age 62 my pension drops by the amount of SS income so if I'm still working I'll delay SS until I quit that job. Or, DW just graduated with her BA and is looking for a job. If she finds one she likes I may quit my job because I work evenings.

 

[Running_Man]

Retirement Goal 2014 (age 58):
Wife SS: 15%
Pension: 20%
Portfolio Withdrawls:50%
4 yr temporary savings fund: 15%

2018 Age(62)
DW SS: 15%
My SS: 15%
Pension: 20%
Portfolio: 50%

For purposes of Social Security I have built in a discount of 40 percent of payouts as presently advertised.

 

[Walt34]

Retired, age 62:

Nude modeling income	10%
"Will work for food" solicitations	8%
Blood plasma sales	2%
Medical research income (chigger itch study participant)	2%
Aluminum can redemptions	2%
Fire ant pelt sales	1%

Before we retired and DW was anxious about leaving her job, we were driving to WV to see what progress had been made on the new house. Lamenting "What am I going to do?" at the same time we were passing a bar with nude dancers with a "dancers wanted" sign out front I suggested that as an employment possibility.

She was most emphatically not amused.

 

[45th Birthday]

Hello 45th,
I'm not yet retired, so still working on the best way to fund my retirement. I noticed you mention 48% Tax-free interest income. If you don't mind me asking, are you accomplishing this feat with muni bonds? If so do you use bond funds or individual bonds.
Very interested in muni's & trying to learn,
Thanks Steve

Steve,
The vast majority is Vanguard High Yield Tax Exempt, VWALX. A little higher credit risk, but tolerable to me. Individual bonds would be too much hassle for me and Vanguard's expense ratio is only .08%

 

[DangerMouse]

Before we retired and DW was anxious about leaving her job, we were driving to WV to see what progress had been made on the new house. Lamenting "What am I going to do?" at the same time we were passing a bar with nude dancers with a "dancers wanted" sign out front I suggested that as an employment possibility.

She was most emphatically not amused.

Actually I would be quite flattered if anyone thought my body was good enough at my age to bring in any income of any type. My DH keeps telling me that if I worked at a strip club the patrons would probably pay me to put my clothes back on.

 

[Bimmerbill]

Actually I would be quite flattered if anyone thought my body was good enough at my age to bring in any income of any type.

There is the option of medical experiments or selling body parts...

 

[dm]

I ran Firecalc before I retired in October 2007 and I was in good shape then. I havn't bothered to rerun it with todays numbers, but I still feel pretty good. Currently our income comes from a pension, dividends, and my wife has a part time teaching job at the local college that pays very well.

Cola Pension 69%
4% from investments, 16%
Wifes part time job, 15%

We can get by with the Pension alone and our net worth is still growing. I don't keep track of everything like I should, but currently the wifes check just goes to Vanguard and we havn't had to sell any stocks or withdraw any of our principal.

The pension is a big part of our retirement, but we also were given the option of buying additional years of credit, and did with the proceeds from another retirement account, the additional years locked us into a higher payment and allowed us to buy health insurance at the group rate.

 

[bbbamI]

Actually I would be quite flattered if anyone thought my body was good enough at my age to bring in any income of any type. My DH keeps telling me that if I worked at a strip club the patrons would probably pay me to put my clothes back on.

...and he's still alive? ...or does DH stand for dead husband now?....

 

[militaryman]

Retire Age 57 year 2024

FERS Pension after Survivor Ben. Ded. 42%
TSP Withdrawls 29% (3% withdrawl rate)
My SS (or FERS Supplement til 62) 14%
Military Reserve Pension 8%
DW SS 7%


Will use buckets of set aside $$ to compensate for gap until Mil Pension starts at 60 and DW SS starts at 62.

Counting on TSP balance based on 4% future returns and continuing my current contribution rate.

Above SS percentages are based on SS only living up to 50% of what the SS website calculators say we should get. (just to add a level of safety)

Also pension is based on current Federal position Grade which I anticipate will be one or two higher over the next 15 years.

 

[Bimmerbill]

I see a lot more pensions that I expected. I wonder how different it is among 20 or 30 somethings?

I'll have a FERS pension at 25 or 26%, or maybe 30% if I work until age 60
Military pension at age 60 of about $6K a year (national guard retirement)
SS looks pretty decent according to my recent statement.

hard to tell what % of my income it will be, I'm only 42 now.

 

[ziggy29]

I see a lot more pensions that I expected.

I don't think it should seem too surprising that the population of people who could FIRE would be overrepresented by folks with pensions. I think it's fairly apparent that it is one of the most predictive factors in whether or not someone will be able to retire early.

I wonder how different it is among 20 or 30 somethings?

Public sector or private sector? Even those young'uns in government jobs may not feel confident that they'll get their pension in 20-30 years. You know how that generation feels about their chances to get SS...

 

[W2R]

I see a lot more pensions that I expected. I wonder how different it is among 20 or 30 somethings?

The question was asked of those who have retired. Retirement has gone from a (primarily) pension system to a (primarily)401K system in recent years.

I would be shocked to find that the majority of present retirees did not have a pension, since most of their working years were done under the pension system (for most employers).

I would also be shocked to find the same to be true when most retirees are those who are now 20 or 30 somethings. Most of their working years will have been done after the switch from pension to 401K for most retirement systems.

 

[jdw_fire]

I don't think it should seem too surprising that the population of people who could FIRE would be overrepresented by folks with pensions. I think it's fairly apparent that it is one of the most predictive factors in whether or not someone will be able to retire early.

it seems to me that if a pension (life annuity) is such a major factor in the ER equation there shouldnt be such an aversion to SPIAs on this board. based on what u said it seems to me they definately have there place in most everyones retirement plans. i can remember trying to point out the advantages of an SPIA a couple of years ago and getting major opposition by the likes of CFB; and i made the case on an income arguement (i showed they provided a higher income then the 4% rule), not the guarantee arguement. looks like times, they have a changed!

o and ps, if u dont remember i am not an annuity or insurance salesman/agent

 

[ziggy29]

it seems to me that if a pension (life annuity) is such a major factor in the ER equation there shouldnt be such an aversion to SPIAs on this board.

I don't think there's as much blanket aversion to SPIAs as with most other annuity products. I'd actually consider converting part of my savings to an SPIA in the future if conditions are right. The two main concerns I have with SPIAs right now are (a) low long term Treasury rates mean a low monthly payout relative to the amount purchased, and (b) insurer risk.