DesertDweller
Confused about dryer sheets
I wanted to share this idea for feedback.
I have been struggling with the reality that my expenses are still too high and my severance runs out in five months, at which point the drawdowns must begin. I really need to do a drastic downsizing -- specifically in housing expense -- to fund any 20-30 year retirement with my pension, SS, and portfolio.
My current idea is that this downsizing can be done in stages over time, and that what I should focus on is a long range plan that involves stepped reductions in expenses, say every five years. The idea is to plan for this in stages but progress toward lower expenses rather than try to cut to the optimal level all at once.
The danger of course is that planning the steps so that everything works out is riskier than a completely front-loaded plan, where you cut expenses to a certain level all at once. The stepped plan is by definition more expensive.
But it seems to me the added expense, assuming you still wind up at the end having had a reasonable standard of living, may be worth the lessened trauma.
I have been struggling with the reality that my expenses are still too high and my severance runs out in five months, at which point the drawdowns must begin. I really need to do a drastic downsizing -- specifically in housing expense -- to fund any 20-30 year retirement with my pension, SS, and portfolio.
My current idea is that this downsizing can be done in stages over time, and that what I should focus on is a long range plan that involves stepped reductions in expenses, say every five years. The idea is to plan for this in stages but progress toward lower expenses rather than try to cut to the optimal level all at once.
The danger of course is that planning the steps so that everything works out is riskier than a completely front-loaded plan, where you cut expenses to a certain level all at once. The stepped plan is by definition more expensive.
But it seems to me the added expense, assuming you still wind up at the end having had a reasonable standard of living, may be worth the lessened trauma.