523HRR
Recycles dryer sheets
- Joined
- Nov 24, 2011
- Messages
- 187
For early retirees, the best safety net is a conservative withdrawal rate. Since ER, ours has been right about 3%.
For early retirees, the best safety net is a conservative withdrawal rate. Since ER, ours has been right about 3%.
For early retirees, the best safety net is a conservative withdrawal rate. Since ER, ours has been right about 3%.
That means something very serious, i.e., changing an early retiree to a regular retiree by working a few more years.
By the time we have satisfied the 3% rule, we would find that we just need the 4% rule (being older), LOL.
Did I read that right? You have 99x your expenses? Wow. Belt, suspenders, and super glue. Lol.
Did I read that right? You have 99x your expenses? Wow. Belt, suspenders, and super glue. Lol.
+1.1. Part-time work
2. Downsize and cut other expenses
3. Move to a lower cost area
4. Return to full-time work
5 Take Social Security at or shortly after 62
Most of these back-up plans will not help in the really bad situations. Economic Collapse, Government Collapse, Zombie Apocalypse etc.
This is where your metals portfolio kicks in. Mine is invested in lead. Mostly 9MM and .357 magnum.
I was thinking the other day if medical insurance gets too expensive, these things could be useful.
I'm more comfortable with cutting my own expenses than asking my wife to reduce hers.+1.
Well stated: classic re-wording of increase income (1, 4, 5) and cut expenses (2,3). KISS.
I'm more comfortable with cutting my own expenses than asking my wife to reduce hers.
She'd like to buy/lease a luxury brand car for her next vehicle. As for me, I'd happily drive an 8 year old minivan if that's the cost to get out of the rat race.
I would rather work slightly longer at a younger age, than risk having to seek work later on so, I guess my safety nets would include:
a) work slightly longer to build up retirement accounts and SS;
b) cash buffer;
d) DH will have subsidized (very good) health insurance through union; our cost and taxes will be deducted from his pension check before it it deposited;
c) DH's non-COLA pension (but his deposit will increase when I hit Medicare age since the cost of his health insurance will decrease);
d) DH is working to at least the minimum age to get 100% x his yearly accruals to avoid deductions from his pension (the plan is for him to take joint and survivor 100%)
e) I will be able to trigger a small annuity payment (I would take joint and survivor 100%);
f) Taxable accounts - be flexible with withdrawals;
g) My retirement accounts - not huge, include 401(k) (I started working late due to six kiddos) & non-deductible IRAs:
h) DH's 401ks (he has two on through company one through Union, neither huge because he did contribute that much); to get DH to contribute, I told him he could use his second 401k as his "fun money account". This year I have him maxing out his fun money account. DH's second 401(k) has the ability to be rolled into a life time payment - we are considering this but would put off triggering this;
i) DH's annuity - which was fully funded through his employer/union. We can take just the profits off it until the year he turns 70 1/2 at which point we can roll it into an IRA which would also require the RMDs, or annuitize.
j) paid off house;
k) my inheritance (which still needs to be better organized);
l) some SS - postpone DH's as he was the higher earner;
m) move to a lower COL area to reduce property tax and income tax.