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Old 07-29-2010, 01:19 PM   #21
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Maybe Suze is planning on them paying 1% in advisory fees or mutual fund expenses? $4000 pension per month plus $1300 month portfolio withdrawal is the $5300 gross income she's talking about. That $1300/month is only 2.9% of the portfolio value. Seems pretty low, particularly given that you have a bond-like pension to lean on.

My advice would be to draw the pension, pay the $7000 or so actual tax you will owe (assuming high state tax and typical fed tax on the $48000 a year pension income), and pay your $3000 a month in expenses from that. Save what you don't spend and don't touch your investments for about 5 years. At 5 years, the pension will yield around $3000 in today's dollars after tax. Start tapping the 401k's and IRA's and/or cash. 3-5 years is also the time when SS will be an option for the elder spouse.

It seems like they are golden. The 59 year old spouse can tap the 401k's/IRA's immediately without penalty or tap the cash. Otherwise the after tax pension payments should more than cover their inflation adjusted expenses for 5 years at least.

If you are paying $24000 a year in taxes on a $48000 pension income and married filing jointly, do yourself a favor. See a tax professional ASAP.
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Old 07-29-2010, 01:25 PM   #22
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$4000 pension per month plus $1300 month portfolio withdrawal is the $5300 gross income she's talking about. That $1300/month is only 2.9% of the portfolio value. Seems pretty low, particularly given that you have a bond-like pension to lean on.
I didn't run the numbers, but that pension is NON-COLA. I'm not so certain that 2.9% initial would be so low after taking that into account.


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Old 07-29-2010, 01:35 PM   #23
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Remember, Suze used to be an FA that consulted her "crystals" whenever she had a question.......hey at least some of us have upgraded to a Magic 8 ball...........
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Old 07-29-2010, 02:44 PM   #24
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I didn't run the numbers, but that pension is NON-COLA. I'm not so certain that 2.9% initial would be so low after taking that into account.
My bigger point is that taxes will not be $24000 a year. Closer to $7000 or maybe 1/2 that if you are in a no/low tax state.

Not directed to your quoted comment: After tax spending solely from the pension will not decrease below $3000 in today's dollars for roughly 5 years. Probably more like 7-8 if you save the extra money from the pension that you aren't spending the first 4 years. 7-8 years from now, one partner will be well into SS eligibility and the other will be a year away (assuming they have paid into SS some over the years). They may not need to tap their 401k/IRA for decades (if ever).
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Old 07-29-2010, 03:24 PM   #25
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I didn't run the numbers, but that pension is NON-COLA. I'm not so certain that 2.9% initial would be so low after taking that into account.


-ERD50
That's right, because the growth in the initial withdrawal is essentially leveraged (it will be much higher than the rate of inflation).
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Old 07-29-2010, 03:52 PM   #26
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As much as I hate Suze, I like her. Where else are you going to see a wealthy white 59-year-old lesbian from Southern California dish out cookie-cutter financial industry advice to an audience profile that primarily consists of middle-income single/divorced African American women in their 20's and 30's from Atlanta with heavy credit card debt and student loans? No place other than CNBC and PBS infomercials, of course! Genius!

Then there's Dave Ramsey, who caters toward working-class homemaker wives clipping coupons in Dallas & Austin and single guys straight out of technical college in Colorado who drive fast cars and usually vote moderate Republican. Scream,"I'm debt free!" and rejoice in the fact that you didn't fall for the debt traps laid out by "the man".

Then, there's the online personal finance bloggers like who cater toward anal-retentive Excel-charting-using Asian accounting grads (think Fatwallet), S-class Mercedes-driving Mormon male engineering grads, and 40-something state-level public employees from the Midwest nearing their over-generous (but still well-deserved) retirements.

Now is there any one I didn't offend there, 'cause you know it's true?
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Old 07-29-2010, 04:13 PM   #27
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Old 07-29-2010, 04:30 PM   #28
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Hmm... I wonder if I can get into the market filling the void for young engineers from upper-middle class backgrounds and trust fund kiddies. I figure they are the ones who have the money to pay me, and have enough money to start needing something a little more complex than cookie cutter, but not enough to require me to bother really educating myself. If i can advise them while sitting on a pier and pointing to the various yachts and dingys to illustrate my points and sipping a drink, I think that this a career that I can pursue for a little while....
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Old 07-29-2010, 04:35 PM   #29
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Ah, George and Sonny. Miss those guys.
Ah, miss them too. And 10 points isn't that much.
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Old 07-29-2010, 05:33 PM   #30
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Then there's Dave Ramsey, who caters toward working-class homemaker wives clipping coupons in Dallas & Austin and single guys straight out of technical college in Colorado who drive fast cars and usually vote moderate Republican.
This reminds me. What ever happened to that guy who lived for clipping coupons every Sunday
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Old 07-29-2010, 07:50 PM   #31
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I believe he was verbally entombed on that original posting.....
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Old 07-29-2010, 08:01 PM   #32
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Originally Posted by angelbaby View Post
As much as I hate Suze, I like her. Where else are you going to see a wealthy white 59-year-old lesbian from Southern California dish out cookie-cutter financial industry advice to an audience profile that primarily consists of middle-income single/divorced African American women in their 20's and 30's from Atlanta with heavy credit card debt and student loans? No place other than CNBC and PBS infomercials, of course! Genius!

Then there's Dave Ramsey, who caters toward working-class homemaker wives clipping coupons in Dallas & Austin and single guys straight out of technical college in Colorado who drive fast cars and usually vote moderate Republican. Scream,"I'm debt free!" and rejoice in the fact that you didn't fall for the debt traps laid out by "the man".

Then, there's the online personal finance bloggers like who cater toward anal-retentive Excel-charting-using Asian accounting grads (think Fatwallet), S-class Mercedes-driving Mormon male engineering grads, and 40-something state-level public employees from the Midwest nearing their over-generous (but still well-deserved) retirements.

Now is there any one I didn't offend there, 'cause you know it's true?
What about anal retentive Excel-charting, saving-obsessed pre-FIRE'ees, that drive old Volvo's and shop for bargains for what little they buy, and who waste way too much time posting on Internet forums. What can we say about them to demean them ?
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Old 07-29-2010, 09:04 PM   #33
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What about anal retentive Excel-charting, saving-obsessed pre-FIRE'ees, that drive old Volvo's and shop for bargains for what little they buy, and who waste way too much time posting on Internet forums. What can we say about them to demean them ?
You can't...

I represent your remark (except for driving a Volvo - I drive a Cadillac), and I'm already retired.

Try as you may, what you think of me is none of my business. Also, I've been verbally abused by better ...

How's that 4 U?
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Old 07-30-2010, 09:31 AM   #34
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Anyone else find her a little frightening?

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Old 07-30-2010, 10:51 AM   #35
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Anyone else find her a little frightening?
For me, it is definitely the eyes.
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Old 07-30-2010, 11:09 AM   #36
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It's the teeth.
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