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What is your withdrawal rate ?
11-29-2007, 04:39 PM
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#1
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Gone but not forgotten
Join Date: Jan 2007
Location: Sarasota,fl.
Posts: 11,447
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What is your withdrawal rate ?
I just ended my first year of retirement bliss and I only withdrew 2.5 % . No ,I did not live on Ramen noodles . I travelled ,ate out ,bought presents and paid for my Mother's nurse's aide .I know some years will be a 4 % but this year wasn't .
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11-29-2007, 04:53 PM
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#2
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Moderator Emeritus
Join Date: Feb 2006
Location: San Francisco
Posts: 8,827
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Nice going. You must have earned yourself a comfy nest egg.
Enjoy it.
__________________
Rich
San Francisco Area
ESR'd March 2010. FIRE'd January 2011.
As if you didn't know..If the above message contains medical content, it's NOT intended as advice, and may not be accurate, applicable or sufficient. Don't rely on it for any purpose. Consult your own doctor for all medical advice.
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11-29-2007, 06:18 PM
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#3
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Thinks s/he gets paid by the post
Join Date: Oct 2007
Location: Willamette Valley, Oregon
Posts: 1,979
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Quote:
Originally Posted by Moemg
I just ended my first year of retirement bliss and I only withdrew 2.5 % .
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The 2.5% SWR makes the "bliss" part twice or three times as good as just regular "bliss"! You have nicely arranged your affairs
__________________
Dreams Worth Dreaming are Dreams Worth Planning For. I Spent a Career Planning for Early Retirement.
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11-29-2007, 06:36 PM
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#4
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Administrator
Join Date: Jul 2005
Location: N. Yorkshire
Posts: 34,054
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Quote:
Originally Posted by Moemg
I just ended my first year of retirement bliss and I only withdrew 2.5 % . No ,I did not live on Ramen noodles . I travelled ,ate out ,bought presents and paid for my Mother's nurse's aide .I know some years will be a 4 % but this year wasn't .
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So what did you do with the 1.5% you didn't spend? Invest it in an account outside of your nest egg or leave it within your portfolio? This is something I wonder about how actual RE's practice safe withdrawals
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Enough private pension and SS income to cover all needs
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11-29-2007, 06:53 PM
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#5
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Gone but not forgotten
Join Date: Jan 2007
Location: Sarasota,fl.
Posts: 11,447
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Well the wild & crazy me was looking at new cars or exotic trips but the sensible me prevailed and it's safe in my portfolio !
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11-29-2007, 06:53 PM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Posts: 5,342
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Is there a down side to taking out too little from a tax deferred account. I'm thinking in terms of minimum mandatory distributions at age 70 1/2. You may be forced to take an amount that may put you in a higher tax bracket.
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11-29-2007, 06:59 PM
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#7
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Recycles dryer sheets
Join Date: Mar 2007
Posts: 121
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2.5% - what for ???
Enjoy yourself, it's later than you think!
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11-29-2007, 07:25 PM
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#8
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Gone but not forgotten
Join Date: Aug 2006
Posts: 6,924
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0% so far from retirement accounts; I did have to take some money from the MMA to buy a car.
__________________
"Knowin' no one nowhere's gonna miss us when we're gone..."
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11-29-2007, 07:38 PM
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#9
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Thinks s/he gets paid by the post
Join Date: Jul 2005
Location: Los Angeles area
Posts: 1,708
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Large extra expenses in medical, travel, car replacement (not mine, but one I totalled) and taxes
on extra stock sales led to a 6% withdrawal rate in my first year of retirement. I expect to go back
to my planned 3.0 to 3.5% rate this next year, but if not, hey, that's what the extra reserves I built up
by working 2+ years longer than I needed to are for. I still have substantially more than I retired with,
and am unconcerned that my expenses were higher than expected.
__________________
learn, work, save, invest, fire
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11-29-2007, 08:11 PM
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#10
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Thinks s/he gets paid by the post
Join Date: Jul 2006
Posts: 1,901
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Withdrawal rate
4%
__________________
“I guess I should warn you, if I turn out to be particularly clear, you've probably misunderstood what I've said” Alan Greenspan
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11-29-2007, 08:18 PM
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#11
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2003
Posts: 5,105
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2.46% - Year 1
__________________
Sometimes death is not as tragic as not knowing how to live. This man knew how to live--and how to make others glad they were living. - Jack Benny at Nat King Cole's funeral
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11-29-2007, 08:19 PM
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#12
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Recycles dryer sheets
Join Date: Dec 2006
Posts: 197
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Quote:
car replacement (not mine, but one I totalled)
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Were you driving the totaled car or did you hit a car ?
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11-29-2007, 09:15 PM
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#13
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2006
Location: west coast, hi there!
Posts: 8,808
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What's to celebrate if you underspent? On the other hand, perhaps you are 23 years old and 2.5% is an appropriate level given your age, AA, etc. Nobody's gets to keep their money at the end ... er, I think that I'm right on that one. Your heirs may celibrate though.
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11-29-2007, 09:20 PM
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#14
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Administrator
Join Date: Jul 2005
Location: N. Yorkshire
Posts: 34,054
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Quote:
Originally Posted by Moemg
Well the wild & crazy me was looking at new cars or exotic trips but the sensible me prevailed and it's safe in my portfolio !
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I was thinking that perhaps if you kept that extra money invested outside your nest egg then if you continue to have good years you may well feel safe enough to splurge on some exotic trip or new car.
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Enough private pension and SS income to cover all needs
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11-29-2007, 09:31 PM
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#15
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Recycles dryer sheets
Join Date: Nov 2005
Posts: 355
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aaron- Look into doing annual, partial Roth conversions as a way to reduce the size of your sheltered account. See Fairmark.com for details. The gov't is going to someday get its taxes from your tax-DEFERRED account.
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11-29-2007, 09:46 PM
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#16
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,007
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Quote:
Originally Posted by Moemg
Well the wild & crazy me was looking at new cars or exotic trips but the sensible me prevailed and it's safe in my portfolio !
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Is it really "safe" in your portfolio? It might be better to put the excess in a cash hoard for when you are ready to spend it or have a sudden unexpected need for ready cash.
Audrey
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11-30-2007, 01:13 AM
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#17
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Thinks s/he gets paid by the post
Join Date: Jul 2005
Location: Los Angeles area
Posts: 1,708
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Quote:
Originally Posted by rjpatt
Were you driving the totaled car or did you hit a car ?
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I was driving the totalled car, borrowed from a friend. My first at-fault accident. Insurance
covered the damage to the other car, but I paid a total of about $10k to replace the Crown
Vic I was in with an Explorer. I was hit broadside right in the drivers door by a car going
about 45-50 mph. It only gave about 6". If I had been in one of my cars (Celica, Accord,
Corolla) I probably would have been killed or badly injured, instead of suffering only a
minor neck strain.
__________________
learn, work, save, invest, fire
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11-30-2007, 02:36 AM
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#18
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
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Quote:
Originally Posted by CyclingInvestor
I was driving the totalled car, borrowed from a friend. My first at-fault accident. Insurance
covered the damage to the other car, but I paid a total of about $10k to replace the Crown
Vic I was in with an Explorer. I was hit broadside right in the drivers door by a car going
about 45-50 mph. It only gave about 6". If I had been in one of my cars (Celica, Accord,
Corolla) I probably would have been killed or badly injured, instead of suffering only a
minor neck strain.
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OK, I am convinced. My next car will be a Crown Vic. Maybe an ex police cruiser. Glad you made out so well. Sounds really frightening though.
Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
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11-30-2007, 04:31 AM
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#19
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Thinks s/he gets paid by the post
Join Date: Jun 2006
Location: Central, Ohio, USA
Posts: 2,635
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Actually increased the investments by 10% - so I withdrew 0% or to be more exact -10%. That is a fully Cash (Laddered CD's) and includes additional CD purchases. I have 2 COLA'd Retirement Plans (Military and SS) which are enough. Next year, 2008, will start IRA RMD for DW and may "hit" the retirement ladder to repay SSA if I go through with the "do over" plan. Current thinking is that I will do it so in the next 34 months we may have to live off of a minimal of cash withdrawals to supplement RMD and Military Retirement before taking SS again at my age 70.
__________________
Vietnam Veteran, CW4 USA, Retired 1979
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11-30-2007, 07:07 AM
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#20
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Recycles dryer sheets
Join Date: Mar 2007
Posts: 319
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Being 45 years young - 0% from my retirement account, and ~4% from my taxable accounts. So far all of my budget needs are satisfied with Interest/Dividend and Cap. gains. So I have not touched the principle of my investments or their gains.
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Just Trekking thru!
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