1.9% instead of 4% the new safe withdrawal rate?

[RobbieB]

I ate some fake bacon at a cheap buffet once. I knew it was fake in the pan. But hey, anything once eh?

It sucked. Once was enough.

 

[NW-Bound]

My wife bought faked bacon before. I thought it was OK, but then I am not a bacon connoisseur, nor a frequent eater of it.

IIRC, there was no pork in it, as it could be consumed by people of Abrahamic religions. This could have been stated on the package, but I am not sure now.

PS. The fact that it could have been made from chicken or whatever protein is not bad, but I wonder what substances they use to make it looks and tastes like bacon.

 

[tmm99]

Is it made from pork?

My pre-cooked bacon (Kirkland Costco) is thick-cut and it's definitely made from pork and not reconstituted. Some slices have more fat on them, and the grains on each slice all look different, but each slice is eventually cooked, unlike the bacon I cook myself. And there's no waviness to the slices - they're all perfectly flat.

I've seen turkey bacon in stores - They definitely look fake.

 

[Koolau]

Is it made from pork?

All pork meat (plus additives that make it bacon.) No fillers, no veggies, just real BACON!:cool smiley:

(I hate that veggie meat though YMMV.)

 

[klec]

Interesting article from Barron Regarding a study which says the new safe withdrawal rate is closer to 1.9%

The authors come to this conclusion based on longer lifespans and after evaluating data from a wide range of sources.

Seems conservative to me even with today’s inflation. But then…

https://apple.news/AyBqJctIMQ5mB6wSRU3TGGA

I guess it partially depends on your rate of return. I just began RMDs this year and reinvesting a portion back into brokerage account.

 

[audreyh1]

+1

Glad to be back home to my homemade bacon!

Hey, hey - we got our bacon press!!

 

[NW-Bound]

In this time of financial market turmoil, I wonder how many are finding solace in bacon, hotdog, and Guinness.

 

[W2R]

In this time of financial market turmoil, I wonder how many are finding solace in bacon, hotdog, and Guinness.

Well, I had Caesar salad with lots of huge Louisiana shrimp on it, for lunch. Other than that, I'm finding solace in the inner peace that having a paid off home and car with no debts brings to me (YMMV!), and lots of fascinating free activities that I love to do here at home.

But now that you mention it, I do need to try that pre-cooked bacon! You can have the hotdog and Guinness.

 

[finnski1]

Well, I had Caesar salad with lots of huge Louisiana shrimp on it, for lunch. Other than that, I'm finding solace in the inner peace that having a paid off home and car with no debts brings to me (YMMV!), and lots of fascinating free activities that I love to do here at home.

But now that you mention it, I do need to try that pre-cooked bacon! You can have the hotdog and Guinness.

And an 8.7% SS raise coming soon

 

[MarieIG]

In this time of financial market turmoil, I wonder how many are finding solace in bacon, hotdog, and Guinness.

The men in my family eat bacon, hotdogs and drink beer.

Would I eat bacon. Yes, if I could get some sugar free and nitrate free . . .

In the meantime, I am drowning my sorrows in copious amounts of black coffee!

 

[aja8888]

In this time of financial market turmoil, I wonder how many are finding solace in bacon, hotdog, and Guinness.

It's smoked sausage from many Texas meat houses that's for me. No more beer or other adult beverages as I had my fill years ago (yes, we have a lifetime capacity and I apparently got there!).

I am now hooked on Propel, black cherry flavor.

 

[tmm99]

Hey, hey - we got our bacon press!!

Interesting! I had no idea there was such a thing!

 

[audreyh1]

Interesting! I had no idea there was such a thing!

I had heard of such a thing but forgotten about it.

By keeping the bacon pressed while cooking, the bacon is cooked very evenly. Nice!

 

[NW-Bound]

Interesting! I had no idea there was such a thing!

+1

Such a thing makes sense, and I thought about getting it.

But then, I remember that my wife cooks bacon in the microwave. However, it comes out curly and not flat.

Hmmm... Perhaps I can find a way to make a bacon press for a microwave. Can't use a pizza stone because of the fat. A flat porcelain dish? A glass plate?

 

[NW-Bound]

Well, I had Caesar salad with lots of huge Louisiana shrimp on it, for lunch. Other than that, I'm finding solace in the inner peace that having a paid off home and car with no debts brings to me (YMMV!), and lots of fascinating free activities that I love to do here at home.

But now that you mention it, I do need to try that pre-cooked bacon! You can have the hotdog and Guinness.

Not that my wife was worried, but I told her that Quicken showed me that we underspent the dividends and interests that came from our stash the last 12 months, let alone SS on top of it. And of course I still make some extra money with selling options.

Still, if inflation persists at a double-digit level, can dividends grow at the same rate to keep up, or will people eventually have to dip into principal?

 

[W2R]

For 100% certainty let’s just have a 0% SWR.

Works for me.

That said, even with almost 0%* SWR my portfolio has continued to drop like a rock due to our recent economic environment.

That's OK! We all know that what Wall Street giveth, Wall Street taketh away (and vice versa).

*(Got to take out my RMD, so my WR is less than 1% but not quite 0%.)

 

[Sunset]

...
But then, I remember that my wife cooks bacon in the microwave. However, it comes out curly and not flat.

Hmmm... Perhaps I can find a way to make a bacon press for a microwave. Can't use a pizza stone because of the fat. A flat porcelain dish? A glass plate?

Two plates stacked with bacon sandwiched between paper towel should work.

1. put in plate.
2. put paper towel on plate.
3. put bacon on paper towel.
4. put paper towel on bacon.
5. put plate on paper towel.

 

[W2R]

And an 8.7% SS raise coming soon

People here actually DO understand me!

 

[NW-Bound]

Works for me.

That said, even with almost 0%* SWR my portfolio has continued to drop like a rock due to our recent economic environment.

That's OK! We all know that what Wall Street giveth, Wall Street taketh away (and vice versa).

*(Got to take out my RMD, so my WR is less than 1% but not quite 0%.)

There are people with 0% WR on this forum. They can live off SS and/or pension, and even continue to save to add to their stash. I am still holding out for SS at 70, so don't know if I will manage to do that.

But if you don't draw on your stash, then it should not matter if it shrinks, right? It's there just for you to have a warm fuzzy feeling. It's not the same gut-wrenching reaction as it is for people who count on the 4% WR.


PS. If you take your RMD but do not spend it and just stuff it in another account, that's no WR. You only lose a bit due to taxes.

 

[W2R]

Not that my wife was worried, but I told her that Quicken showed me that we underspent the dividends and interests that came from our stash the last 12 months, let alone SS on top of it. And of course I still make some extra money with selling options.

Still, if inflation persists at a double-digit level, can dividends grow at the same rate to keep up, or will people eventually have to dip into principal?

Maybe! Who knows. But even if that happens, how long will it last? I don't know that, either.

For the past few years I haven't been spending any of my dividends at all, and I'm not even doing much LBYM, so I'm not losing any sleep over it. Remember, there are a lot of people out there who earn their money by scaring investors so they can more easily manipulate them.

 

[NW-Bound]

Two plates stacked with bacon sandwiched between paper towel should work.

1. put in plate.
2. put paper towel on plate.
3. put bacon on paper towel.
4. put paper towel on bacon.
5. put plate on paper towel.

My wife probably has thought of that, but perhaps she likes curly bacon.

PS. Skip the paper towel. You would lose all the good pork fat that Emeril sings praise about. We usually strain it off and save for cooking.

 

[W2R]

There are people with 0% WR on this forum. They can live off SS and/or pension, and even continue to save to add to their stash.

That's me.

PS. If you take your RMD but do not spend it and just stuff it in another account, that's no WR. You only lose a bit due to taxes.

Well, then I guess I'm at 0%. I just put my RMD's in my checking account. They are only $600/month, either way. But I would not feel guilty if I wanted to spend them. I just don't need to do that right now in order to be happy.

As Frank says, "The key to happiness is not having what you want - - - it's wanting what you have!"

 

[Jeffman52]

We have a local butcher about 1/4 mile from our house. All my bacon comes from there. I don't press it or cook it flat. I dont care how much grease I drain off. I do love bacon from a butcher that is made the same way they have made it for over 100 years. Smoked in a smoke house. Once you have bacon that way, you never go back.


On topic... Not quite retired yet but very close. If your calcs were correct, it shouldn't matter what the market is doing. All its doing is impacting what might be left when you are gone.


Inflation however is another issue altogether and can be a painful one. Remember that CPI is weighted so depending on "what" you spend your money on, will show how inflation impacts you (your personal inflation). So just because the CPI says 8% doesn't mean that for you inflation isn't higher or lower than the govt states.

 

[braumeister]

We have a local butcher about 1/4 mile from our house. All my bacon comes from there. I don't press it or cook it flat. I dont care how much grease I drain off. I do love bacon from a butcher that is made the same way they have made it for over 100 years. Smoked in a smoke house. Once you have bacon that way, you never go back.

I got my bacon from a local butcher for many years. They had regular and "double smoked" and I always got the double smoked (much more flavorful). I had them slice it very thick, about ten slices to a pound, and it was wonderful.

But several years ago I learned to make my own bacon (others here do the same) and it's another order of magnitude better. I slice it even thicker, about seven slices per pound, and it is just heavenly.

Back on topic:

If your calcs were correct, it shouldn't matter what the market is doing. All its doing is impacting what might be left when you are gone.

That's a very intelligent approach.

 

[daylatedollarshort]

We come out ahead with high inflation because our inflation adjusted income (including SS and TIPS) is higher than our expenses subject to inflation (capped property tax, fixed rate mortgage). Plus our home value will generally increase with inflation over time, at least once prices reset from when we had under 3% mortgage rates. Pensions and SS cover most of our annual expenses.

I still like to work on lowering our overhead every year. If I could spend $0 and have a fun life I would do that. My main current project is getting the energy bills to zero. I just like the idea of low consumption and living off grid as much as possible, except for experiences, like going to concerts, live theater and ballet. We really enjoy doing that. But even then we get tickets from seat filler memberships, Facebook specials and go to college events so it doesn't cost too much.