In another thread focusing on the financial tribulations of my MIL, many alternative sources of retirement income were highlighted which made me curious...
So, if you are retired or semi-retired, what were your sources of income in 2008? If you are a young dreamer like me, what sources of income do you envision having in retirement?
Equity dividends? Bond dividends? Interests from savings account, MMFs, CDs? SS? Pension? Rents from investment properties or roommates? Reverse mortgage? Annuity? Part-time work? Asset sale? Capital gains? Hobby? Book royalties? etc...
A typical post could be formatted as follows:
SS 40% of total income
Pension (COLA) 20%
Dividends (stocks) 10%
Dividends (bonds) 10%
Annuity 10%
Tips from gig at the Go-Go lounge 10%
Anyways, for me it will likely be:
Annuity (COLA) 33%
Dividends (stocks and bonds) 67%
Now it's your turn...
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That would likely be complicated because I'd have to break it into 3 or 4 periods when I retire, when my wife retires and when we start taking pension and SS benefits (assuming we're not means-tested out of them).
I'm more and more inclined to arrange my finances in a way that will keep income moderate for life. And if that means using 72(t) to keep future IRA/401K withdrawals from triggering high tax brackets and entitlement means testing before we become eligible for them, so be it. Our house is paid off and we can live cheaply.
__________________ "Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
Retired in 1988
Age=73
Wife=71
36% Pension (defined benefit plan)
27% My Social Security
13% DW Social Security
24% CD's (calculated at current 4.5% yield)
All percentages were calculated at net. I took minimum requred distributions the last two years.
Future - my FERS pension, diet COLA, projected to be 15% income.
Future - restart contributions at age 55, then tap existing Roth IRA sometime after age 59.5
Future - Muni bond + stock MF cap gains and dividends (all reinvested now).
Existing EE and I bonds - minimum maturity within 10 years. TBD to continue earning interest to full maturity or cash in and convert to Wellesley or munis.
Future - TE money market funds (I just started one up).
Future - SS actual benefit TBD with 14 year zero earned income between FIRE and age 62.
Patent royalties - worth a cup of coffee somewhere.
__________________
"Happiness depends upon ourselves." - Aristotle
2008 was my last year working so there was a couple months work, a buyout bonus and sold back sick leave, hard to calculate, no withdrawals from IRA . 2009 is our first year in 'full' retirement. Looks like 83% DW & my COLAd pensions, 15% from a stock I sold in 2008 and 2% DWs occasional work. 2010 should be about 83% pensions, 14% from IRA withdrawals and 3% from DWs occasional work.
__________________
“There are only two ways to live your life. One is as though nothing is a miracle. The
other is as though everything is a miracle.” - Albert Einstein
Forgive my ignorance, but don't you lose this when dh2b becomes dh? I thought most survivor benefits were lost in pension plans when you remarry.
__________________ "Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
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Join Date: Feb 2008
Location: 43N Latitude, NY
Posts: 5,366
Quote:
Originally Posted by ziggy29
Forgive my ignorance, but don't you lose this when dh2b becomes dh? I thought most survivor benefits were lost in pension plans when you remarry.
No ignorance on your part...this is a federal CSRS survivor pension.
As long as I don't remarry before age 55, I'm good to go. I am 100% positive of that one.
The green light happens in 2013. It's gonna be a hell of a wedding. Poor guy will have waited 8 years total for me.
He claims I'm worth it.
When do my benefits end?
Survivor annuities are payable through the end of the month prior to the date of the event which caused the loss of eligibility. For example, if the remarriage or other event occurred in April, benefits would end on March 31.
Survivor annuities payable to widows, widowers, and former spouses end if the survivor remarries before age 55 and was not married for at least 30 years to the deceased employee or annuitant. Widows, widowers, and former spouses who remarry after they reach age 55 continue to be eligible for survivor annuity benefits. The survivor annuity for a former spouse who is entitled because of a court order, ends if the terms of the court order are satisfied. Insurable interest annuities are payable for the life of the survivor.
If an annuity to a surviving spouse ends for a remarriage, it can be restored if the remarriage ends. Before the benefit can be restored, the survivor must pay back any lump sum payment of retirement contributions, if applicable. Former spouse benefits that end because of a remarriage can never be restored. If you want your annuity restored, write to us and include a copy of the decree of divorce, annulment, or death certificate.
__________________
"Happiness depends upon ourselves." - Aristotle
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.
I will be retiring in November at age 61, and plan to claim my Social Security at age 66.
Social Security (G Fund principal* before SS starts)
24%
Federal pension ("diet COLA")
10%
TSP equal monthly payments (self-COLA'd)
10%
Bond fund dividends
12%
Wellesley dividends
30%
Stock fund dividends
14%
*My TSP (401K) is invested in the G Fund, which is a federal bond fund guaranteed to never lose principal. I plan to use this investment to compensate for my lack of SS during the first few years of retirement. I will have to take larger withdrawals before SS than after, in order to do that. So, I separated that out extra withdrawal as "G Fund Principal".
The basic TSP equal monthly withdrawals that I will be taking even when I have SS is the "TSP" category, and I plan to COLA adjust it.
Wellesley is a balanced Vanguard fund (VWIAX) with primarily bond holdings.
__________________ "Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harborless immensities." - - H. Melville, 1851
Last edited by W2R; 06-01-2009 at 07:20 PM.
Reason: didn't add up to 100%! all better now
Semi-retired. My part-time pay so far covers our expenses, except for about a period of 4 months without work recently when I needed to transfer cash from a money market account to the checking account.
I have been fortunate to afford to be casual about our investments, and have only looked at the total portfolio size. I have never broken out as to how much of the portfolio return comes from dividends, interests, and cap gains.
All I know is we have enough for 4% SWR to cover our expenses, even without SS.
__________________ Couple both 53-year-old, with 1 child graduated from college, and 1 left to go. DW RE @ 50. No pension, no benefits for either of us. Working part-time for fun, and for travel money (in good years that is, and for food in lean years!).
I am planning on living off interest and dividends. If SS is around when I reach that magical age it would be gravy. Now I just need to get to the huge dollar amount that I need to live off interest and dividends
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I don't want to spend my entire life at work. I deserve more. - Want2retire
- dh2b w*rking, pooling our incomes and doing just fine.
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