At the 'end' do you plan on spending to zero or leave a legacy?

[RetiredAndFree]

The saver mentality is so ingrained it will be difficult to spend it down to zero.

+1

To my chagrin. We're working on it though!

 

[Mulligan]

Provided by pension stays solvent, my situation is inverse. The longer I live the better the chance my daughter receives an inheritance. If I was her, I would be hoping for the middling scenario.... I live long enough to accumulate plenty of assets to transfer to her, but not long enough to where she is too old to do anything with it.


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[BBQ-Nut]

I'm a bit surprised so many here 'hope' that the money doesn't run out.

I guess being an engineer, I over analyze, but I've done some mortality table look ups, added a margin of years to that, then run my own estimates bracketed by zero return on investments and a very conservative return to see if the savings will last to the estimate age of my demise.

As a coworker of mine said "Hope is not a plan".

 

[Khan]

I will die first and will leave what I can to him.
He will have to figure out how to live on reduced amount.
I have no control after that.

 

[REWahoo]

As a coworker of mine said "Hope is not a plan".

And certainty is uncertain.

 

[steelyman]

And certainty is uncertain.

That's what happens if you're a romantic rover.

 

[NW-Bound]

I'm a bit surprised so many here 'hope' that the money doesn't run out.

I guess being an engineer, I over analyze, but I've done some mortality table look ups, added a margin of years to that, then run my own estimates bracketed by zero return on investments and a very conservative return to see if the savings will last to the estimate age of my demise.

As a coworker of mine said "Hope is not a plan".

A WR of 3.5% IS my plan. And I surely hope that the money does not run out, because I plan to cut back to 3.5% of "current balance" if necessary.

The truth is that the biggest uncertainty is my longevity; the money issue is much less important.

 

[ERD50]

...

As a coworker of mine said "Hope is not a plan".

And when you start retirement, w/o a crystal ball, what can you do but take a historically conservative WR% and then 'hope' that the future is not worse than the worst of the past? It's not something we have control over.

And you re-evaluate as time marches on.

So what is your plan, that contains certainty? Did you use your engineering skills to build a time machine?

-ERD50

 

[BBQ-Nut]

And when you start retirement, w/o a crystal ball, what can you do but take a historically conservative WR% and then 'hope' that the future is not worse than the worst of the past? It's not something we have control over.

And you re-evaluate as time marches on.

So what is your plan, that contains certainty? Did you use your engineering skills to build a time machine?

-ERD50

Gee - thanks for the poke in the eye....

At least I'm crunching numbers and coming up with some sort of estimate.

My question was related to - have people actually tried to plan this out? Of course times change, but shrugging the shoulders and resigning yourself to not even trying is not very responsible, imo, of course.

 

[ERD50]

Gee - thanks for the poke in the eye....

At least I'm crunching numbers and coming up with some sort of estimate.

My question was related to - have people actually tried to plan this out? Of course times change, but shrugging the shoulders and resigning yourself to not even trying is not very responsible, imo, of course.

Not a poke in the eye, just trying to understand the question, and your comments (which some might see as poking at them), that they are just 'hoping' and don't have a 'plan'.

And who says others are not 'crunching the numbers'? This forum crunches numbers ad nauseum. FIRECalc is a number cruncher.

Looking at your 'plan' -

I guess being an engineer, I over analyze, but I've done some mortality table look ups, added a margin of years to that, then run my own estimates bracketed by zero return on investments and a very conservative return to see if the savings will last to the estimate age of my demise.

Can you provide specifics? Mortality - how many years margin, and margin relative to what? Mean, 10%, 5%, 1%?

And aren't you 'hoping' that your portfolio will provide at least a real return? What if it doesn't? I just don't see the distinction between what you are saying, and what you seem to be chastising others for?

-ERD50

 

[Hermit]

I will die first and will leave what I can to him.
He will have to figure out how to live on reduced amount.
I have no control after that.

"I will die first" was my plan too. Hope it works out better for you than it did for me.

 

[Alan]

Gee - thanks for the poke in the eye....

At least I'm crunching numbers and coming up with some sort of estimate.

My question was related to - have people actually tried to plan this out? Of course times change, but shrugging the shoulders and resigning yourself to not even trying is not very responsible, imo, of course.

I planned for one of us to live to 95 and maintain a certain level of spending. The calculators show we will leave a chunk of money to our children even in the worst situation. If this turns out to be correct then we will be very happy. We have told our kids not to expect anything.

 

[HFWR]

This forum crunches numbers ad nauseum.

Yeah, that.

 

[meekie]

I'm "hoping" that our returns will be so good that I'll have extra money to give as part of a charitable gift annuity or something similar while I'm still alive. No kids, might leave a little to my nephews, but hope to give away what I can while I'm still alive.

 

[braumeister]

The plan here calls for both of us to live to age 100. Since DW is two years younger, that's a long time.

Still, how can anyone really plan for everything?

The mother of a friend died not long ago at 103, and she needed round-the-clock care for her last five years. Since we're self-insuring for LTC, a stray statistic like that just boggles my mind. Who can possibly predict what that kind of care will cost so far in the future?

Consequently, I behave very, very conservatively in financial matters. Ignoring pension and SS, the portfolio is 70% equities, but much lower with those items included. I feel this is my safest course of action.

 

[iam21177]

Breaking even in the end would be ideal, but impossible to predict. I really hope not to die with millions though. I'm projecting things out to age 95. However, I do not intentionally plan to leave behind a legacy on purpose like for heirs.

My dad I guess you could say broke even. He died with $6.14. Yes, he left behind a pension that my mom now gets, but in his savings and in his retirement he left $6.14 at the age of 58. He spent all the retirement in the 6 years he had cancer and intended on using it all. So he succeeded in doing that. He even sold his car for cash 2 weeks before he died. He knew he was dying.

He could have left behind $10k so that his own kids didn't have to pay for his funeral though.

 

[seraphim]

The general expectation is our portfolio will be worth considerably more when we die than it is currently.

 

[FIREd]

If I die with less money that I have now, I'll probably consider it a planning failure. I don't like the idea of getting poorer as I get older. Money may be the only leverage I have left!

And who knows, in 30 or 40 years, doctors might have found a way to give me another good decade or two. I would not want to turn down that opportunity because money is running low.

 

[REWahoo]

If I die with less money that I have now, I'll probably consider it a planning failure. I don't like the idea of getting poorer as I get older. Money may be the only leverage I have left!

I might feel exactly the same way if I was also a kept man!

 

[steelyman]

I've lost relatives. The sadness is not what they did or didn't leave, it is that they are gone.

 

[foxfirev5]

While I profess to be a total return type investor I can see a real living on the dividends tendency developing. My mother worked for a brokerage house for nearly 50 years and had a solid never touch the principal mantra. Now I'm finding myself seeking refuge in this philosophy. However my DW and I would have to sacrifice somewhat to accomplish this plan at this point.
Not the worst problem to have, but I'm struggling a bit with the priorities. As I've done in the past I'll keep on moving ahead. Sooner or later I'll pull the plug and give the retirement thing a whirl.

 

[W2R]

If I die with less money that I have now, I'll probably consider it a planning failure. I don't like the idea of getting poorer as I get older. Money may be the only leverage I have left!

And who knows, in 30 or 40 years, doctors might have found a way to give me another good decade or two. I would not want to turn down that opportunity because money is running low.

Yes, if/when a longer life ever becomes available, I want to have enough money to be the first in line! What a dream come true that would be. BTW I agree; I really can't see myself ending up with a smaller portfolio than what I have now.

Of course, I am saying this from the viewpoint of the present market boom, and who know what may happen? Maybe I will be lucky to be able to afford lunch in my 90's.

 

[obgyn65]

I expect to leave more than what I have right now. No heir. Thinking about setting up a trust fund or something similar. Turning 49 this year, still working so I don't have much time to reflect on this topic yet.

 

[daylatedollarshort]

I like the idea of continuing to save money in retirement and focusing on decluttering and downsizing, and not buying a lot of stuff. My main hobby these days is implementing sustainable living ideas.

I like leaving a cushion for emergencies and LTC, and what is left can go to the kids and our favorite charities.

 

[eytonxav]

Not a plan, but would like to leave a legacy for my kids as they are in an economic environment today, which career wise is much less favorable than when I started working.