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Tracking a spend down
Old 11-08-2018, 12:22 PM   #1
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Tracking a spend down

Knowing that when we retired in 1989 at age 53, that we had no appetite for the stock market, we planned on a spend down of our limited assets. At the time, the big question mark was how to live for 9 years, before SS and Medicare kicked in. The long and short of this, is that we spent down an average of 25K/yr. and depleted a total of about $225. The "frugal years" here:
Sharing 23 years of Frugal Retirement

Now, a look back over the years 2008 to 2018.... to see how much we've spent recently, from our net worth/assets... Simple numbers by looking at the results...

First... Our current income:
SS $25K
Investment Income...I bond interest and a few stocks $13K
Total current income $38K
Total current expenses $48K
Total spend down from 2008 assets in 10 years $100K.

This is apropos of nothing important, but a simple update of one couple's trip through (now) 30 years of retirement.

Disregarding inflation, and at current rate of spending... based on the past ten years, we're good for the coming several decades.
Inflation since 1989 has been approximately 100%.

So... some actual numbers, and not from a calculator, that basically confirms the numbers in Firecalc.
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Old 11-08-2018, 12:59 PM   #2
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Thank you for sharing. As a newly retired person, it's comforting to hear success stories. Actually, I always enjoy your posts!
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Old 11-09-2018, 12:07 PM   #3
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Thank you for putting your numbers up and for the 23 years post. We should direct all of the jittery new retirees here. Even at 3 years in for me, it is still encouraging to see other real-world numbers.
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Old 11-09-2018, 12:29 PM   #4
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Much appreciate this. Even before the likes of the 4% rule, internet, etc., you figured it out. Congratulations to you on a successful retirement and thank you for sharing.
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Old 11-09-2018, 12:37 PM   #5
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Quote:
Originally Posted by imoldernu View Post
Disregarding inflation, and at current rate of spending... based on the past ten years, we're good for the coming several decades.
What are your plans if future spending does not go according to predictions based on the past ten years? For example, if you run into significant age related health or care expenses? You've mentioned you have LTCi, but expenses could go beyond or outside of policy benefits, no?

I bring this up for discussion because our current spending (and we'd like to spend more!) is limited by my planning for these kind of eventualities.
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Old 11-09-2018, 02:16 PM   #6
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Originally Posted by youbet View Post
What are your plans if future spending does not go according to predictions based on the past ten years? For example, if you run into significant age related health or care expenses? You've mentioned you have LTCi, but expenses could go beyond or outside of policy benefits, no?

I bring this up for discussion because our current spending (and we'd like to spend more!) is limited by my planning for these kind of eventualities.
Point well taken. Yes that could happen. Life itself, no matter the age, is chance. We've talked about and realize that there are no guarantees, and are comfortable with the odds. I would never try to second guess the plans of others... it''s a matter of the comfort level.

Here are some of the considerations.
We're good financially for three years apiece in our CCRC nursing home, if and when it happens.
@ 82/83, without nursing home, no foreseeable problem as our reasonable life expectancy, based on genes, family history, and current health is about 5 years at best. Should protect our current assets for our kids.

Be that as it may, the bigger decision, with longer odds, was retirement @53... one that we have never regretted. An extra 12 years of total freedom (53 to 65) at a time when we were totally active, doing things that many people at age 65 never get a chance to do...snowbirding, surfing, traveling, partying and dancing, boating and exploring every thing we had ever wanted to do.

The ER decision was taken after a lot of what "if?" discussions. Looking back, the biggest factor, was our age at the time. It was the fallback consideration.
The thought and possibility of getting behind in our plan, would have meant going back to the workplace for a few more years.... That was the dealmaker.

The decision was influenced by some personal experiences. Jeanie's dad passed at age 50, as did her brother and an aunt, and we had two neighbors, whose husbands died before they turned 60.

We're both prepared for whatever happens, and have passed on instructions to our kids, to notify ER in case we disappear from the board.
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