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Old 04-24-2015, 03:27 PM   #41
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Since I (could) live another 65 or more years, I would splurge on very little and withdraw a conservative 2.5-3% every year. I would find meaningful activities for my day-to-day schedule, and I would not focus on earning money. Even if I only withdrew 2.5% a year ($100K), I could live extremely comfortably. If I were able to supplement it with say $20-30k of income from work I enjoy or am passionate about, I could even live more comfortably and not touch my nest egg.

At the end of the day, I would be able to focus on every other goal in life besides accumulating money and paying for my day-to-day life, which largely takes up most of my time in life right now.

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Old 04-24-2015, 04:17 PM   #42
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My estate is already set up so that at least 40% goes to charity, the rest to DS and his family.

With the windfall you describe, I might raise that to 50-60% charity. Figure that's my chance to fund some improvements on the world, with the satisfaction of knowing I get to pick some charities who have proven just how much "bang they can get for their buck."

A great feeling---- knowing that some of my choices can benefit others, without me even having to show up to ensure that it happens!


"Everything becomes more itself." --C.S. Lewis
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Old 04-25-2015, 04:13 PM   #43
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Originally Posted by RetireAge50 View Post
If you had $4,000,000 and 40 years to live would you:
1. Plan to spend about the same per year
2. Spend a $1,000,000 on your wildest dreams and then go with 75% of option 1.
3. Spend variably based on your energy/desires at the time (knowing the decision changes future spending).
4. Stick with a safe spending level. Maybe spend more later or give it away.
5. Another plan. This is the dumbest question ever posed.
I have always planned for option 1 but am now thinking 2 or 3 makes more sense.

Great hypothetical. Except it isn't. That's me, very shortly, at about $6.5mm and early 50's. So how to answer on a whimsical Saturday afternoon before going out tonight with DW and friends?

I have to say I am planning carefully for #4 of around 4% and not touching the capital, which should continue to grow nicely over time and not concern me with respect to yearly market ups and downs. About $2mm of it is already invested in the homes we want and there is really nothing else we want that we don't have.

Good problems to have I'm sure you'd agree.

But, as I've told interested people in recent years, in general terms, you still need to have a plan and discipline to ensure you keep what you earned for your lifetime, and meet your intent to pass it on, gift it, or whatever. The amount doesn't really matter past a point, you can easily still blow it on "red" if you aren't careful. I've seen it. It isn't pretty.
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Old 04-25-2015, 04:55 PM   #44
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This is a very interesting question (to me, at least).

In all honesty, before I read this thread, I would assume that I would stick to #1 or #4 - a WR of about 2.75%-3% on the full portfolio (assuming retiring at 45 +/-). My projected portfolio would hopefully be a little north of $3, assuming nothing about the unknown future Mrs.

But reading the other responses and the OP's question, it's funny how my view is starting to lean more towards a modified #2, with a bigass splurge (or much higher annual spend) over the first few years of retirement, then a 'safe' 2.75%-3% on the smaller portfolio amount, as it would give me a huge amount of amazing experiences, and still allow me to plan tons of more fun activities on a budget that would fit in my smaller annual spend level. (and since I know how to shop around for good bargains, my bigass splurge would contain a long list of amazing activities.)
Dryer sheets Schmyer sheets
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Old 04-25-2015, 07:01 PM   #45
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A variant of #2 could be to set 1/4 aside for splurges to be spent down over the first 10 years.

I guess that is really the same.

Just be careful about blowing a large chunk of it on something that adds a lot to annual expenses for upkeep and maintenance. Some things that cost a lot up front are also expensive to own.
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
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Old 04-25-2015, 07:46 PM   #46
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If I had 4 million and ONLY 40 years left to live?
1. Dump the wife (check)
2. Now I got 2 million (Check)
3. Move to SA (check)
4. Marry a beautiful young girl (check)
5. Invest in RE (check)
6. Got my 4 million again (check)
7. Have a few Son's and enjoy life (check)
8. Apparently the doctors were wrong as i feel great.
9. Crack open another bottle of Jack Daniels and thank the "Whiskey Gods"!

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