MasterBlaster said:
Here is a link to an older person who makes the case to not blow your nestegg...
http://www.analyzenow.com/Free Pubs/Appeal for better planning/an_appeal_for_better_planning.htm
It's not just living too high on the hog...Sometimes life throws you a few zingers such as big medical expenses or supporting your grown children.
Just maybe your FIRE planning should include some extra room for such unexpected things.
I have always maintained that you should have twice of your non-discretionary spending for emergencies, or market pull backs etc. - So, if you have to cut spending, you can.
But the people that ran out of money at age 80, were obviously not paying attention.
I cannot imagine 'suddenly' turning 80 and discovering they don't have enough financial assets?
Didn't they take a look when they were 70? As for handing out money to children. This has bigger problems than consuming up a retirees nest egg.
The author of this article kept saying that the retirees were 'using plans' that depleted their portfoilios on the day they died. I know of no 'Plan' that is able to do that kind of forecasting!
- Plans should be revisited. I would venture to guess that most of these 80 olds never planned at all, but had Non-Cola pensions and continued to spend 'It all' with very little savings. Maybe TH would like to tell us the backround of this author and find out what his objective is?
Also, if these people's nest eggs (if they even had one) were growing during the 90's bull market, they had to have been overspending to depleat their portfolios.
They must have plugged in 25% portfolio gains into their financial calculators for 'future returns'
Jarhead - What do you think, after you've reached the 'magic age' ?