Retire at The Pie Shop

[ferco]

Has anyone heard of or read, Reire at The Pie Shop. Its listed on the Morningstar Discussion board at Retirement Issues, posted by bob90245. He, Ray Lucia as as well as Paul rangaard have the clearest, most straightforward, easy to understand retirement/withdrawl strategies I've seen. They don't require a PhD in statistics, economics or the stock market. I've tried following "Gummy's" work, and I've concluded life can't be that complex....usually, if you can't explain or teach it with simple arithmetic and high school algebra somethings wrong.

Let me know your opinion of the "pie shop".

 

[Nords]

Here's the thread from M*'s Investing DURING Retirement discussion board, and here's Bob's "Retire at the Pie Shop" article.

I've tried following "Gummy's" work, and I've concluded life can't be that complex....usually, if you can't explain or teach it with simple arithmetic and high school algebra somethings wrong.

Actually I think it can be quite a bit more complicated than that.  Gummy goes to great mathematical lengths to explain the math behind simplifications like the Rule of 72 and advanced statistics.  It's good to know where to go to look those things up, especially if financial advisors are manipulating the math & statistics to artificially improve their records.

But you don't need PhDs in combustion physics & mechanical engineering to be able to drive a car.

Let me know your opinion of the "pie shop".

There's more than one way to draw down a retirement portfolio, and this is a good one.  Bob takes the time to walk through the process in excruciating detail, something a book publisher (and most writers) wouldn't have the patience for.

But that won't keep us from developing two or three pages of critiques!

EDIT: Link fix.

 

[ESRBob]

Nords,
I didn't see the links in your posting and wondered if you could re-post as I'd like to read those articles/discussion threads. Thanks and Merry Christmas!

 

[Spanky]

Here's Bob's link:
http://bobsfiles.home.att.net/retireCH.html

 

[Nords]

I didn't see the links in your posting and wondered if you could re-post as I'd like to read those articles/discussion threads.

Here's Bob's link:http://bobsfiles.home.att.net/retireCH.html

Sorry, I messed up a cut&paste on that one.  Thanks, Spanky. The M* discussion is at  http://socialize.morningstar.com/Ne...orumId=F100000001&convId=158511&t1=1135610802 and Bob's the first response.

 

[Arif]

Nords, thanks for the link to Retire at the pie shop. Very interesting read.

 

[Howard]

For those who don't know gummy, he is a Retired Professor of Mathematics from the University of Waterloo(the same place that gave you RIMM) and his work can get confusing.

I cannot follow his logic, I have known him for about 10 years, but I am challenged in that arena.

http://www.gummy.org

 

[education]

This was a great read. But how many of us will ever be blessed with a 1,200,000. pot of money to draw from? How abpout a more reasonable and realistic starting point? 2, 3 or 400,000 may not be too far-fetched for some seeking ER.

Professor

 

[Mr._johngalt]

2, 3, 400k seems too low to ER.  Keep working and perhaps just R. 

Not true. 2, 3, 400K is easy. Brainpower and willpower...........
we don't need no stiiiiiiiiinking money.

JG

 

[REWahoo]

Not true. 2, 3, 400K is easy. Brainpower and willpower...........
we don't need no stiiiiiiiiinking money.

JG

Having a working spouse helps too, doesn't it JG.

 

[Mr._johngalt]

Having a working spouse helps too, doesn't it JG.

It helps a great deal. OTOH, I was doing fine as a bachelor.
No regrets though. You take what you know and make the best of it.

JG

 

[education]

Guys--

I think JG is right on all counts. I plan to leave the country (probably Mexico and Panama). I think I can do better there than in the states.

Professor

 

[Cut-Throat]

Here's the thread from M*'s Investing DURING Retirement discussion board, and here's Bob's "Retire at the Pie Shop" article.
Actually I think it can be quite a bit more complicated than that. Gummy goes to great mathematical lengths to explain the math behind simplifications like the Rule of 72 and advanced statistics. It's good to know where to go to look those things up, especially if financial advisors are manipulating the math & statistics to artificially improve their records.

But you don't need PhDs in combustion physics & mechanical engineering to be able to drive a car.
There's more than one way to draw down a retirement portfolio, and this is a good one. Bob takes the time to walk through the process in excruciating detail, something a book publisher (and most writers) wouldn't have the patience for.

But that won't keep us from developing two or three pages of critiques!

EDIT: Link fix.

I read through his strategy. The 30% trigger point etc. seemed a bit complicated. I am wondering how the end result would have differed from a yearly re-balancing approach?

 

[MJ]

It helps a great deal. OTOH, I was doing fine as a bachelor.
No regrets though. You take what you know and make the best of it.
JG

Was that when you were living with Mom & Dad?

 

[education]

John--

I'm sorry your defense of my post caused you to take such heat!!!!!!! You had a will and a vision. You had a goal to RE and you made it a reality. You didn't need a million to do it either. Many of us are the products of "financial planners acting badly" and we have succumbed to their ill-conceived advice on what it takes to retire comfortably and practically. I admire your tenacity and veracity. Your ok im my book, Podna'!!!!!!!!!1

Professor

 

[Nords]

Having a working spouse helps too, doesn't it JG.

And an extremely frugal lifestyle, including dumpster-diving.

And Social Security the minute you're eligible.

And a reverse mortgage.

Are we missing any other "stiiiinking" factors that make this seem so deceptively simple?

I don't think that cash flow is sensitive to brainpower & willpower. Selling things or earning money, yes. But not to a Mensa-ite with a stiff upper lip...

 

[brewer12345]

Guys--

I think JG is right on all counts.  I plan to leave the country (probably Mexico and Panama).  I think I can do better there than in the states.

Professor

Prof, for what its worth, I think that if you are single or at most a couple, you can probably cast off the yoke with a few hundred grand. But its not going to be the same freedom that one would have with a portfolio large enough to fund your current lifestyle. Moving overseas might be a viable strategy. I have seen some pretty bare bones lifestyles lived out of RVs. I'd also imagine that you'd need to occasionally do some paid work, although it coulde be pretty irregular and lots of different things. The real tough part would be health insurance. If you could crack that nut and were willing to live a very different lifestyle from the middle class Merkin norm, I think its doable.

 

[cute fuzzy bunny]

Man i'm glad that I dont have to spend a lot of time detailing the realities of these JG claims anymore...

Ok, cant help it...JG...is it you or your wife that has the brainpower and willpower?

'cause I think by this definition, every guy wearing a stained wifebeater t-shirt thats on his second six pack by noon time while his wife is down working at the dry cleaners qualifies to declare himself a brainpower and willpower driven early retiree.

 

[Nords]

Ok, cant help it...JG...is it you or your wife that has the brainpower and willpower?

I forget-- which one of those is needed to operate a scanner?

 

[Lazarus]

These "retired" men with working wives are real go-getters. Around 5:00 when the wife gets off they go to get Her!

 

[cute fuzzy bunny]

Yeah its tough being a gigolo...right C-T?

Nords....rofl...

My mother in law with almost no computer experience at all figured out how to use the scanner thats built into her printer. Scanned in all of the expensive family photos everyone had taken by the finicky and uncooperative local photographer and printed all of their reprints for them. Guess it only took her a few minutes to figure it out.

 

[education]

brewer--

Thanks for the input. I guess I should say that in my case I have a small db pension from another state and my health insurance will continue after I retire with me paying about 10% on a 2 person family plan.
I could never think of leaving w/o that particular "platinum" benefit. And everything is paid for--home, cars, kids thru college and married and both sets of parents deceased. CC is paid every month.

Professor