travelover
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Mar 31, 2007
- Messages
- 14,328
Yea! Of all the nerve, asking a financial retirement question here.Why do you care? It's not one size fits all.
Yea! Of all the nerve, asking a financial retirement question here.Why do you care? It's not one size fits all.
Question for OP: Do RMDs count if you reinvest them all?
Our income from SS and pensions covers all our regular expenses. However, the RMD is used to pay taxes and gifts for our sons and to charities.You have been withdrawing from your portfolio. I’m talking about zero portfolio withdraws. Where your income (SS, pensions, part time job, annuity) covers your annual expenses.
The opposite here. No income streams at all yet, and only SS expected in the far future. So all living expenses are supplied by the portfolio.
Curious who else has a zero withdrawal rate. Income that meets or exceeds expenses.
The opposite here. No income streams at all yet, and only SS expected in the far future. So all living expenses are supplied by the portfolio.
+1. WR below 2%.
It’s become increasingly rare (private sector at least) but some folks have generous pensions (congrats) - that exceed their spending with/out Soc Sec. That seems to be the underlying question of this thread. “Who else has a big pension?”I'm not really sure what this question means in a financial sense. I can certainly purchase an annuity and get my WR to zero. Or I could have not rolled over my pensions. I guess some people just "feel better" by not seeing monthly, quarterly or annual withdrawals.
FWIW, our current WR from our investments was 2.5% in 2018. Currently I'm collecting spousal benefits. Our WR would be <1% once my SS@70 kicks in. Our WR could be zero if we paid off the mortgage. So really, what does that mean?
Interesting question. I personally don't think it means anything. As someone once said, " Money is fungible".
I'm not really sure what this question means in a financial sense.
I’m talking about zero portfolio withdraws. Where your income (SS, pensions, part time job, annuity) covers your annual expenses.
Sorry, Ivansfan, not sure why this seemed to anger you.
I only asked, because today at lunch with some newly retired buddies they asked what kind of withdrawal rates each other was dealing with. I asked what they meant. They said withdrawing from your portfolio to cover your expenses. And I see people here talking about their withdrawal rates and quoting financial articles talking about average withdraw rates.
I told them right now we aren’t needing to withdraw from our portfolio or anything as our income covers our expenses.
Thus, I was curious about this as I am newly retired. Nothing I planned for, it just has ended up this way. So, I was curious about this.
Well, we have a zero withdrawl rate, for our normal monthly expenses. DHs pension is more than our monthly cost of living and many months I save the extra, usually that's about 20% of the pension. I also have a little part time income (school crossing guard, low pay but I enjoy it!) and I started my Social Security (718 a month) a few months ago. Most of the time I can save both of those.
Then the big lumpy things happen like a cash wedding gift (2017) to our son and daughter-in-law, we bought a new to us used car and some years we seem to have something medical that's bigger than normal. Oh, this year we finally did a new kitchen! That's really the only time we withdraw anything.
But we are not wealthy! We just live in a low cost of living area with no mortgage and no debt. We are very comfortable living on DHs pension. It's not huge but it covers our ongoing monthly expenses so to us it's PLENTY.