Poll: Retirees, how adequate is your retirement income?

[NW-Bound]

... Just got back from San Diego and Maui. Have got more generous on tips...

One of the things we have done too.

We have been giving anonymously to some trusted charity organizations. So, why not also be a bit more generous to people who serve us directly? It still amounts to a tiny fraction of the charity donations we have made.

 

[REWahoo]

Have got more generous on tips.

Me too.

I think maybe it is nature's way of helping counterbalance the curmudgeonistic behavior associated with advancing age.

DW disagrees. She thinks I'm just losing it...

 

[Walt34]

Have got more generous on tips.

We're doing that too since SS started. Today on a $26 lunch tab I left a $10 tip, the waitress did well by us.

One of these days I'm going to leave a $100 bill as a tip just because it'd be neat to do and would definitely make someone's day. At least at the places we go.

 

[Lsbcal]

We're doing that too since SS started. Today on a $26 lunch tab I left a $10 tip, the waitress did well by us.

One of these days I'm going to leave a $100 bill as a tip just because it'd be neat to do and would definitely make someone's day. At least at the places we go.

One never knows about tipping. Usually I don't see a reaction as we are heading out the door.

A few days ago we took our first Uber ride. I know you don't have to tip and even discussed it a bit with the driver. Our ride was short and only about $7. I decided to tip $3 but as I was handing him the cash I noticed a $5 bill in there. Just slipped it out to leave $3, as $8 on a $7 ride is just over the top for me. It was awkward and who knows how he felt. No smile. Oh well. Is this what they mean by "no good deed goes unpunished" ?

 

[Walt34]

Is this what they mean by "no good deed goes unpunished" ?

It could very well be.

 

[Spudd]

I'm in a weird situation as I retired last year at age 42 with a not-very-large nest egg. Using VPW, we'll have enough to live on comfortably unless the market goes to hell. This situation only has to last another 12 years until I'm 55, then I can start taking my pension which will provide about half of our annual living expenses (maybe a bit less by then, due to inflation). Then at 62 I can start taking CPP (Canadian SS). At 67, old age security kicks in (or is it 65 now?). Once all those are online for both me and DH, we won't need income from investments at all. So really, I could probably even tell VPW the money only has to last 25 years, but I'm telling it 50 years anyway. I also expect to get some inheritance at some point, although I'm not counting on it whatsoever. All told, I think we'll be quite comfortable after 65, but since my nest egg is small, it freaks me out to spend money at this point even though intellectually I tell myself it's fine. We also have rental income but I don't want to depend on that always being there (it's a commercial property so if the business goes under, it could be a tough slog to find a new tenant).

 

[Lsbcal]

... All told, I think we'll be quite comfortable after 65, but since my nest egg is small, it freaks me out to spend money at this point even though intellectually I tell myself it's fine. We also have rental income but I don't want to depend on that always being there (it's a commercial property so if the business goes under, it could be a tough slog to find a new tenant).

That (blue) part of your message resonated with me. We are older and taking SS. I debated holding off on SS to get the bigger sum. DW wanted it now. For us it was a good choice for me to take it at 64 as I'm too conservative sometimes and would be less likely to spend on the things that matter now.

Don't mean to turn this into one of those endless threads about when to take SS. We all need to make our own choices.

 

[Major Tom]

According to VPW we are underspending.

Your mention of VPW piqued my interest. I have valiantly resisted thoughts of a variable withdrawal rate plan in the past, but just for you-know-whats and giggles, I downloaded the VPW spreadsheet and input some figures. I'm not sure whether I should thank you or not, but if I were to follow this method, I'd be able to withdraw significantly more than my current 2% rate, and put my RV dream into practice without a second thought - and without having to earn any part time income (which I really do not want to do).

So, thanks for the tempting thoughts - I guess. This is creating an inner conflict

 

[RobbieB]

Go buy your bad RV and get on with your dream before it goes away.

You could die tonight. Go look at some tomorrow and have fun!

 

[W2R]

Here's how you can justify it to yourself.

(1) If a WR of 2% is OK, then 2.5% is hardly any different. Tell yourself it would have been fine if you had withdrawn 2.5% all along.

(2) Add up the differences between 2% and 2.5% for every year since you first retired.

(3) If that's not enough to cover the cost of the RV, then try 3%.

 

[REWahoo]

Major Tom, you need to do it.

Or you'll never make Lt. Col.

 

[jfn111]

I put down "A little more" though we could be withdrawing another $30,000 per year to get to a 4% withdrawal rate. The wife and I both turn 60 this year and she will start SS when she's 62 and I'll wait until ?
Once were both on SS I don't know what we would spend any withdrawals on other than the grandkids.
We buy whatever we need and took the kids and GS to Florida for two weeks this year.
The biggest blessing for us is the employer subsidized healthcare which includes dental and vision. The dental goes away when we turn 65 so I'm trying to get everything done over the next 5 years.
My Real Estate income covers all my bad habits so if I quit that I may need a higher withdrawal rate.

 

[Major Tom]

Go buy your bad RV and get on with your dream before it goes away.

You could die tonight. Go look at some tomorrow and have fun!

Here's how you can justify it to yourself.

(1) If a WR of 2% is OK, then 2.5% is hardly any different. Tell yourself it would have been fine if you had withdrawn 2.5% all along.

(2) Add up the differences between 2% and 2.5% for every year since you first retired.

(3) If that's not enough to cover the cost of the RV, then try 3%.

Major Tom, you need to do it.

Or you'll never make Lt. Col.

You guys are right. You're right. I know you're right.
I'm retreating back into my comfort zone for the time being, but mental seeds have been sown. Besides, there will be some great deals in about 5 or 6 months from now

 

[Lsbcal]

You guys are right. You're right. I know you're right.
I'm retreating back into my comfort zone for the time being, but mental seeds have been sown. Besides, there will be some great deals in about 5 or 6 months from now

It is a good idea to go slowly in major decisions. Best to convince oneself with through analysis. VPW is a good tool for that. Setting a high enough "Last Withdrawal Age" is a good idea (for me anyway).

Keeping a copy of VPW (or something else like FIRECalc) with the analysis is useful to avoid that "what was I thinking?" feeling when looking back.

 

[RobbieB]

Gas prices are creeping up for summer, but that's hot RV season too.

I think you are right, fall-winter will be a good time to buy.

 

[NYEXPAT]

Way more then I can spend, but I do worry a bit for the young wife if she goes past 100.

 

[splitwdw]

You guys are right. You're right. I know you're right.
I'm retreating back into my comfort zone for the time being, but mental seeds have been sown. Besides, there will be some great deals in about 5 or 6 months from now

Make sure you talk to the RV'ers on this forum about living full time in an RV with your cats. Right now you ride a bike. Make sure you won't mind driving a RV (class B), renting space at RV parks, dumping sewage, gas prices, RV maintenance, finding a vet for cats as you travel, doctor for your self and whatever else comes with full time Rving. I'm NOT an RV'er. Really go into this with eyes wide open. Rent before you buy.

 

[Major Tom]

Make sure you talk to the RV'ers on this forum about living full time in an RV with your cats. Right now you ride a bike. Make sure you won't mind driving a RV (class B), renting space at RV parks, dumping sewage, gas prices, RV maintenance, finding a vet for cats as you travel, doctor for your self and whatever else comes with full time Rving. I'm NOT an RV'er. Really go into this with eyes wide open. Rent before you buy.

I definitely appreciate the concern and believe me, I've weighed the pros and cons many, many times in my head. The seed was first planted back in the late 80's/early 90's, when I subscribed to Chuck Woodbury's "Out West" newspaper. He used to travel the back roads and small towns of Western states, and write about the interesting things and people he came across. This was before the days of the internet. He published the paper himself from his mobile office (his RV) on the road, and managed the subscriptions - all while traveling around. His intriguing tales caught my imagination, such as the one about the couple who lost a hubcap while traveling through the desert. They thought it would have been useful to find a store that sold nothing but hubcaps, so they bought a tiny town in the middle of nowhere, where they ran the gas station, and opened a hubcap store. It was in the middle of nowhere, but you could buy gas and hubcaps! His paper was full of stories about the many characterful people he came across, and they fired my imagination.

Since stopping work in 2009, I have spent an inordinate amount of time reading multiple blogs and following many YouTube channels on RV'ing. I have read about all the possible pitfalls, and am keenly aware of pretty much all of them, I think. All that is left is to actually do it and who knows - after a month in the RV, I might hate it and start hankering for a life in the old sticks n' bricks again.

My budget is limited, so the plan is to find a 20-25 year-old Class B (or maybe Class C) that has been well-maintained, and keep up with the maintenance (I'm frugal but not cheap). If I hate RV'ing, I figure I can sell it without losing my shirt. I'd need to try the life out for at least a month and the cost of renting, compared to the cost of buying an older rig favors the latter option (for me, at least).

Heck, it took me 2 years to pluck up the will to spend $600 on a new camera. It's going to take a little longer to get my head around this purchase . In fact, it's the extra recurring costs, and what that will do to my WR, that concerns me more than the one-time cost of an old rig.

But thanks for the concern. I just want you to know I have done a lot of thinking about this.

 

[Lsbcal]

How about renting an RV?

 

[Major Tom]

I'm planning on buying an older rig (as in 1990's). Considering that I want to spend more than a week or so to really get the feel of it, I think the price differential is in favor of buying. Plus, I don't know if rentals allow pets, but I really don't want to inflict 3 cats on a rental rig, even if they allow it. Having the furry gals with me is essential to seeing if this is all going to work out.

I feel bad about the thread hijack. I really should have started this as a separate thread!

 

[splitwdw]

Major Tom, You didn't hijack I/we did. I hope you find what you're looking for whether to stay in a house or go roaming. Keep the kitties safe.

 

[mickeyd]

I was unable to discern the difference between "a lot more" and "a little more". We seen to have more than enough income after 10+ years of ER.

 

[W2R]

I was unable to discern the difference between "a lot more" and "a little more". We seen to have more than enough income after 10+ years of ER.

You can apply your own definitions to "a lot" and "a little", since this poll is purely for fun. Here are my definitions but yours don't have to be the same:

To me, the dividing line between a little and a lot is pretty vague. If FIRECalc says you can spend 3.5%, then to me "a little more" would be the case where you want/need to spend 3.0%. "A lot" would be the case where you want/need to spend only 2.5% or less. But we each define these differently I'm sure.

 

[mamadogmamacat]

Voted a little more, as I'm only 3 1/2 months into ER (55). Hope to feel comfortable with saying a lot more after being into ER fro a few yrs. Calculations (FIRECALC and others plus my own hopefully too conservative spreadsheets) say I can now, but who knows, been waiting for that expected market correction for over five yrs now. Actually hoped to see it come and go before I ejected. Plus, my current spending is at the low end of my budget range. I'm enjoying myself too much to likely remember to myself, but hopefully someone will re-poll in say 2 yrs or so, so I can vote "a lot more"

 

[gayl]

2015 = family cruise to Alaska, 50k to son for downpayment on a house, 10k to dtr for downpayment on a MFH (she lived here for many yrs so even), horn for grandson off to college

2016 = family cruise, 10k to dtr for car, 10k to daughter in law for car, fixed house (walls, floors, bathroom gut job)

But net worth still went up so I 'guess' it's more than I can spend?