Telly
Thinks s/he gets paid by the post
- Joined
- Feb 22, 2003
- Messages
- 2,395
How about posting on websites to get reams of explicit financial information from people, then writing a book or columns about it for income to be used for question number 6?
Income Streams
- Thread starter BanDit1
- Start date
CuppaJoe
Moderator Emeritus
Welcome, BanDit1! Regarding your original question, you first. But in the meantime I thank you for getting me to think outside my usual 4% box (which was once 8% because I was raised on Terhorst). The first thing you got me thinking about is that the amount to be withdrawn from my portfolio overlaps with my pension/profit sharing stream due to lump sum rollovers mixed with my IRA and the fact that my Keough with my current employer is under my control; not to mention a small pension payout that wasn’t rolled over.
I see little reason to break it down as you suggest. More interesting things to contemplate might be: 1) what percentage is deferred income?; this is so important because of difficult-to-determine tax consequences; 2) is the pension stream inflation-protected? (mine is not); 3) consider the synergy of it all-–I work for current income and future pension and SS pay outs, the income increases the amount I can put into an IRA and regular savings; 4) _______; 5) _________ ; etc. Like Jack Benny, I’m thinking it over.
I see little reason to break it down as you suggest. More interesting things to contemplate might be: 1) what percentage is deferred income?; this is so important because of difficult-to-determine tax consequences; 2) is the pension stream inflation-protected? (mine is not); 3) consider the synergy of it all-–I work for current income and future pension and SS pay outs, the income increases the amount I can put into an IRA and regular savings; 4) _______; 5) _________ ; etc. Like Jack Benny, I’m thinking it over.
First of all, I apologize for appearing to be prying into everyones financials. That certainly was not my intention. I recently ER'd and was looking to see how my situation stacked up with others who have been at it a lot longer than me.
And, you're right...it should have been me first.
Anyway, my income is just about 2.5 times my expenses (80% pre-ER income).
It is made up of 76% employer pension and 24% from investments.
My pension is COLA'd, so I hope to keep those percentages relatively the same over time. Thanks.
And, you're right...it should have been me first.
Anyway, my income is just about 2.5 times my expenses (80% pre-ER income).
It is made up of 76% employer pension and 24% from investments.
My pension is COLA'd, so I hope to keep those percentages relatively the same over time. Thanks.
CuppaJoe
Moderator Emeritus
Glad to see you posting again, BanDit1, your numbers imply that you will be okay. I’m thinking about pulling the plug before May Day, here are my un-audited estimates: pre-Age 62 stream will be 100% from my portfolio which is seventy percent deferred income. At age 62 I will take SS and a small pension annuity will kick in; I estimate that the two combined will be about forty-five percent of my income stream.
You’re probably right to examine the origins of income streams. Example: when I start spending the small pension annuity, I know I will be painfully aware of where the money came from: long-ago mini-corp suddenly cancelled the plan just before many of my buddies would have vested. I’ve always thought of that money as "found money" because I went to work for the company for other reasons than acquiring retirement benefits; the annuity was later threatened by the Executive Life Scandal and some of those co-workers were lost to AIDS. I’ll have to have a ceremony and toast them as well as the company’s financial advisor who killed himself (apparently) because he had put so many people into Executive Life plans.
On another thread W2R discussed ways of taking the emotion out of money-–I thought a plan to run it through CDs before spending it was a good one.
You’re probably right to examine the origins of income streams. Example: when I start spending the small pension annuity, I know I will be painfully aware of where the money came from: long-ago mini-corp suddenly cancelled the plan just before many of my buddies would have vested. I’ve always thought of that money as "found money" because I went to work for the company for other reasons than acquiring retirement benefits; the annuity was later threatened by the Executive Life Scandal and some of those co-workers were lost to AIDS. I’ll have to have a ceremony and toast them as well as the company’s financial advisor who killed himself (apparently) because he had put so many people into Executive Life plans.
On another thread W2R discussed ways of taking the emotion out of money-–I thought a plan to run it through CDs before spending it was a good one.
