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View Poll Results: What nest egg withdrawal rate are you comfortable with?
1.0 - 1.49 percent 9 3.27%
1.5 - 1.99 percent 4 1.45%
2.0 - 2.49 percent 26 9.45%
2.5 - 2.99 percent 42 15.27%
3.0 - 3.49 percent 75 27.27%
3.5 - 3.99 percent 59 21.45%
4.0 - 4.49 percent 26 9.45%
4.5 - 5.0 percent 16 5.82%
more than 5% 18 6.55%
Voters: 275. You may not vote on this poll

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Old 04-18-2017, 06:54 PM   #161
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Even if I did not need to spend anything more on myself, I would take some money to give to charity, to pay for a vacation taken with my offsprings, my relatives, etc..., instead of dying and leaving them with a big surprise. Why not spend some while you are still alive and see what your money buys?

PS. I guess it's because I am not religious, I do not think I will be aware of what happens after my death. Hence, I want to see the effects of my goodwill when I am still alive.
That's my thinking on the subject. We gift now, and hope to gift more in the future. And our "heirs" (mostly siblings) are some to whom we would like to gift a lot while we are still living so that we can see the enjoy it, including taking them traveling, etc.
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Old 04-18-2017, 07:03 PM   #162
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That's my thinking on the subject. We gift now, and hope to gift more in the future. And our "heirs" (mostly siblings) are some to whom we would like to gift a lot while we are still living so that we can see the enjoy it, including taking them traveling, etc.
That is a great way to think about it. DW has a second cousin that we see occasionally. She and her hubby have no children, and are quite well off due to LBYM and working hard. They take their nieces and nephews on several trips a year, and are enjoying spending the money now, with them.

FWIW, we are not part of the recipient group, nor would we expect to be. But it great to see them having fun NOW.
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Old 04-18-2017, 07:10 PM   #163
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I just looked up with Quicken. Ever since I started tracking expenses with it, my gifts and charity donations have added up to 11% of total spending.

Imagine if I could be more generous and spent 1% WR each year in that category!
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Old 04-19-2017, 08:07 AM   #164
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Even if I did not need to spend anything more on myself, I would take some money to give to charity, to pay for a vacation taken with my offsprings, my relatives, etc..., instead of dying and leaving them with a big surprise. Why not spend some while you are still alive and see what your money buys?
Absolutely!! You can only spend it or give it away, now or later. Why not take an active role and experience the joy of giving now? We just got back from helping to build a school in a very poor part of Jamaica. Was very gratifying to see where our money went and how much it could help others. I view money as a gift. Why not take advantage of it, either for yourself or others?
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Old 04-20-2017, 08:59 AM   #165
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Absolutely!! You can only spend it or give it away, now or later. Why not take an active role and experience the joy of giving now? We just got back from helping to build a school in a very poor part of Jamaica. Was very gratifying to see where our money went and how much it could help others. I view money as a gift. Why not take advantage of it, either for yourself or others?
Can you supply any details? Organization, time commitment, $ contributed, location?
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Old 04-20-2017, 09:15 AM   #166
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Absolutely!! You can only spend it or give it away, now or later. Why not take an active role and experience the joy of giving now? We just got back from helping to build a school in a very poor part of Jamaica. Was very gratifying to see where our money went and how much it could help others. I view money as a gift. Why not take advantage of it, either for yourself or others?
Good for you. I would like to do something meaningful like this, on a smaller scale.
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Old 04-20-2017, 09:46 AM   #167
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Absolutely!! You can only spend it or give it away, now or later. Why not take an active role and experience the joy of giving now? We just got back from helping to build a school in a very poor part of Jamaica. Was very gratifying to see where our money went and how much it could help others. I view money as a gift. Why not take advantage of it, either for yourself or others?
A friend of mine started a charity called "Bridges to Prosperity". They build foot bridges in parts of the world where a bridge can really make a difference to people's lives. He retired very early and had the financial resources to provide the seed money in getting the charity started. It is now pretty self sufficient.

An individual can really make a difference!
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Old 04-20-2017, 12:38 PM   #168
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That's my thinking on the subject. We gift now, and hope to gift more in the future. And our "heirs" (mostly siblings) are some to whom we would like to gift a lot while we are still living so that we can see the enjoy it, including taking them traveling, etc.

+1 We have paid for a house for a homeless family in TJ, Mexico, our sister city, we help our younger relatives with college (small costs like books, random fees, etc.) and hope to do more as our NW grows.

We plan on withdrawing about 5% until social security kicks in 10-12 years later. Yes we'll probably drawn down the portfolio but we have safety valves if it falls too rapidly. We just want to travel and adventure while we're still in our 50's and young-ish. Our plan would allow us to live spartanly on the rental property income alone.
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Old 04-20-2017, 02:17 PM   #169
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Even if I did not need to spend anything more on myself, I would take some money to give to charity, to pay for a vacation taken with my offsprings, my relatives, etc..., instead of dying and leaving them with a big surprise. Why not spend some while you are still alive and see what your money buys?
We feel the same. Around 1% of WR goes toward funding our kids' Roths, paying for a vacation or two for them, contributing to my nephew's Special Needs trust fund and some charitable donations.

This makes us feel much better than dying with millions....
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Old 04-20-2017, 04:02 PM   #170
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A friend of mine started a charity called "Bridges to Prosperity". They build foot bridges in parts of the world where a bridge can really make a difference to people's lives. He retired very early and had the financial resources to provide the seed money in getting the charity started. It is now pretty self sufficient.

An individual can really make a difference!
+1
A friend started a charity to provide food for families of cancer patients. He learned that many forego food in order to pay for medical costs.

His wife passed from cancer and he watched first hand the sacrifices that other families made in difficult times.

I think he was hungry as a kid and decided this was something he could make a real difference in.
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Old 04-23-2017, 02:06 PM   #171
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Agreed - most early retirees are looking at 40 years instead of 30, and some even have to plan for a 50 year retirement. Retirement income streams like SS and pension may not come online for a decade or more after retiring.

I was also surprised that 3.5% was closer to the median rate considering how many people here seem to mention rates of 3% and even lower.
We're planning for retirement at 60, and I'm very comfortable with 3.3%--basically a 30 year retirement.

Given the quality of diets, healthcare, and life stresses in the US, count me as skeptical about needing to plan for living to extreme old age. The "everybody's going to live to be 110 and break the country" theme in the media has a strong whiff of propaganda to it.
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Old 04-23-2017, 03:09 PM   #172
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`We are withdrawing 3.75% right now, but will cut back when I turn 62 and start withdrawing SS. We have no children, so we're not leaving a legacy for anyone. I don't see us running out of money over our lifetime. The time to use it is when you are mobile and young, not watching reruns of Jeopardy.
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Old 04-23-2017, 05:52 PM   #173
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Well I am retiring this year, I understand the 4% withdraw strategy. But I see us pulling up to 5or 6 percent for 2 to 3 years right after retirement . Cutting back to 4% in our mid 60's. I will report back in a few years to see how it worked out. One retiree posted their last 12 years of withdraw percentages and it was very helpful. Leaving some behind is great but don't want to leave to much.


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Old 04-23-2017, 07:37 PM   #174
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I no longer get to vote in one sense being 73 close to 74(RMD). But age 50 to 70 of ER I ranged from 2-6% with my target and most common the mighty 4%.

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Old 04-23-2017, 08:07 PM   #175
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We're planning for retirement at 60, and I'm very comfortable with 3.3%--basically a 30 year retirement.

Given the quality of diets, healthcare, and life stresses in the US, count me as skeptical about needing to plan for living to extreme old age. The "everybody's going to live to be 110 and break the country" theme in the media has a strong whiff of propaganda to it.
The standard withdrawal rate models have used 65 plus 30 is 95. You also have to consider the probability of one of a couple household living to that age. Now it might seem that 95 is pretty old, but I wouldn't say extreme. This is about planning for contingencies, so using 95 as the age doesn't seem unreasonable.

So someone retiring at 55 might be better off planning for 40 years assuming that 95 number.

If at 60, you feel that planning for neither you or your wife to live past 90 is good enough, that's up to you. My dad is in his late 80s and still alive, so personally I prefer to plan to possibly 95.

These are choices we each have to make.

Not sure where you're getting a whiff of propaganda.

I was simply answering why many early retirees here are considering periods like 40 years or more, as opposed to the standard 30 years used in the models with a retirement age of 65. It depends on how early one retires and we have some very early retirees on this forum.
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Old 04-23-2017, 08:32 PM   #176
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For me it will be 4%. That works out in my planning, but will be higher for the first 5 or 6 years until I apply for ss.
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Old 04-24-2017, 05:42 AM   #177
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I was simply answering why many early retirees here are considering periods like 40 years or more, as opposed to the standard 30 years used in the models with a retirement age of 65. It depends on how early one retires and we have some very early retirees on this forum.
To complement that thought: For those going very early: Going from a 30 to 40 year scenario means roughly losing 0.5%-1% leeway.

Beyond that there is hardly any difference between 40 years and perpetual retirement (or endowments) in terms of 'safe' withdrawal rate.

And that is because for the past many years (100-200?) the actual real return on capital was about 3%.
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Old 04-24-2017, 07:00 AM   #178
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....I understand the 4% withdraw strategy. But I see us pulling up to 5or 6 percent for 2 to 3 years right after retirement .
Same here. Keep us posted on how it goes. And congrats!
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Old 04-24-2017, 10:39 AM   #179
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To complement that thought: For those going very early: Going from a 30 to 40 year scenario means roughly losing 0.5%-1% leeway.

Beyond that there is hardly any difference between 40 years and perpetual retirement (or endowments) in terms of 'safe' withdrawal rate.

And that is because for the past many years (100-200?) the actual real return on capital was about 3%.
Well sure - you need to pad a little more for longer retirements hence the lower withdrawal rates.

I retired at 39, but I didn't see a point in using a longer planning period than 50 years, and the data (historical scenarios) for 50 years were so limited anyway.

I did do some scenarios for 50. But I also felt that 40 years was probably good
enough. Especially since I planned to reevaluate my situation every 5 to 10 years anyway. Now I'll within that 40 year window, and in spite of going through 1999, and 2008/9 we are in better shape than when I retired. So far so good (knock on wood!!!).

And it's an ongoing process. As we cross 65 and move into that 30 year window, I expect we will also be raising our withdrawal rate.
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Old 04-24-2017, 05:12 PM   #180
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Don't know about "comfort zone", only know about absolute dollars. I voted 1.0%, but it's really lower than that. My WR is whatever my RMD is, however I always reinvest my RMD, so it's not truly a WR. Absolutely $0.
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