Was it freaky to start living on investments?

[audreyh1]

When you first retired, was it kinda freaky to stop getting a regular paycheck and start living off your investments instead?

I know it was for me.

And we retired with perfectly adequate funds even under the most conservative estimations of need.

I think it took me 2 or 3 years of living non-paycheck to start feeling financially secure again.

Just thought I'd throw this out there. It's quite a psychological adjustment.

Audrey

 

[KB]

Yes, I'm in adjustment mode as it's only been 7 months.

Still a little unnerving to pull money out of my MM every month.

 

[REWahoo]

Yes, I'm in adjustment mode as it's only been 7 months.

Still a little unnerving to pull money out of my MM every month.

I'm also 7 months into "living" and the transition from accumulation to distribution hasn't been a problem. Although we are living 100% off our portfolio (no pension, no SS yet), I've not had any problems spending the money in our MM account. My positive outlook has probably been helped by the fact that the total value of our portfolio has continued to grow even though we've been drawing it down.

 

[ESRBob]

Yeah,
REWahoo has a great point: it is a lot easier in years like the past few when portfolio values have gone up. You want to see freaky, try spending down assets during years like 2002. Well, hey -- we'll get another chance soon enough, I'll warrant. That's when you spend lots of time going over historical data and SWR research studies...

 

[audreyh1]

Yeah - LOL!  I retired in late 1999!

I actually did see quite a few retirees crash and burn by 2002.  They had made huge speculative investments in equities. 

It's true that having your investment portfolio increase in value in spite of withdrawing from it does very much help that sense of financial security.

Audrey

 

[unclemick]

Retired Jan 1993

Still in the adjustment mode (mentally). I had the little 1973/74 historical event precalculated in my portfolio - so I was prepared for the little 2002 mini event. Still the mental part is an inside job.

Unclemick2 - who thinks FireCalc is better than drugs.

heh heh heh heh heh heh

And NO - I haven't spent 4% yet - maybe this year!

I will spend the money - I will spend the money - someday!

 

[MJ]

I ER'd (layed off) nearly 1 year but since I got 6 month severance plus health insurance as well as unemployment benefits, I haven't felt the impact of my retirement yet.
I am now in the process of selling my house so, my final portfolio value is still not finalized.
The good news is firecalc even with a conservative 25% stock/75% 5 yr treasury portfoliomix has me withdrawing a lot more than I need with a 100% success rate.

MJ

 

[PJ03]

Jarhead, you made my day, what good post to wake up too this cold morning.
where in the Sierras are you livings, my retirement plan includes lots of time up there.
Retired 1987

It wasn't freaky at all for us, (until I stumbled on this board, about 2 years ago, and found out according to most of the posters, we had been spending too much.

When I retired, both my daughters were pretty much raised, and we moved to the Sierras in No. Calif.  My wife had been a homemaker all our married life, and I had no pension, and no sponsored health ins.

The plan was to see how it goes, and if need be, start a service business.  (Had some experience in that area). Until such time, we spent what we wanted to, and I concentrated on working on Golf handicap, and fishing.

Proving that even a blind squirrel gets an acorn once in a while. , I never did have to get a business going.  

We stumbled into Soc. Sec. (7 years ago for me, and 2 years ago for my wife.  She gets half of mine.

Regarding spending, I did want to point out something that I made a previous post on.

I honestly think habits change enough as the years go on that you will find yourself not spending as much by choice as you get older.
At least that has been our experience.

We were spending about $50,000.00 a year in 1987, and that figure hasn't changed much.

Still play a lot of tournament golf, fish, etc., but neither one of us care to travel much anymore.

In my experience, inflation over-states the real life case.  (Not talking the 60's and 70's type inflation).

Point being, don't short-change yourself, by being too anal about doing what you want when you are young enough to really enjoy it.

Jarhead