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chinaco · 05-13-2007, 05:46 AM

I believe planned extraordinary expenses should be pulled out and not factored in. For example: I am getting ready to retire and the Year I retire I am going to rehab the house at a cost of $300k and Buy $60k worth of furniture.

That funding/expense should be set aside and not considered as part of the portfolio or general ongoing expense. My thoughts are that one should have the basic dwelling situation funded and covered before retiring (even if that means $ were set aside specifically for that purpose).

It seems to me that the big wild card is health. That seems to be a non-discretionary item that could upset things.

Most other spending (except for extraordinary catastrophes) are controllable. That would point to improper (i.e., realistic) planning as the culprit.

The 75% number is probably a decent rule of thumb... but that is about it.

05-13-2007, 05:46 AM	#11
chinaco Thinks s/he gets paid by the post Join Date: Feb 2007 Posts: 3,052	I believe planned extraordinary expenses should be pulled out and not factored in. For example: I am getting ready to retire and the Year I retire I am going to rehab the house at a cost of $300k and Buy $60k worth of furniture. That funding/expense should be set aside and not considered as part of the portfolio or general ongoing expense. My thoughts are that one should have the basic dwelling situation funded and covered before retiring (even if that means $ were set aside specifically for that purpose). It seems to me that the big wild card is health. That seems to be a non-discretionary item that could upset things. Most other spending (except for extraordinary catastrophes) are controllable. That would point to improper (i.e., realistic) planning as the culprit. The 75% number is probably a decent rule of thumb... but that is about it. __________________ Planned FIRE Summer 2011 Disclaimer: I make no warranty or guarantee about the accuracy or completeness of this information. I am not a financial planner, my comments only represent my opinion.