An idea I've had for a while, wondering if anyone else does this. While we don't want for much, it is fun to sometimes just spontaneously buy a new toy, indulgence or take a trip.
I FIRE'd in 2017, DW is still working 2-3 more years. We are not touching our portfolio now.
My though was to plan (of course) for a SWR, say 4% when DW retires. And then sleep well on growth over that if it happens. But then have a "go play" threshold if the markets do very well in a given month/quarter/whatever and go treat yourself to something. Like budget for 4%, leave anything up to 6%, but say, anything over 6% growth for a given period is play money.
Might be some tax sting on that, but life's short..... Been calculating growth on the portfolio monthly and annualized, we are pretty squarely in the 7's with an AA of around 30/70. This over the last year and a half.
Thoughts?
I FIRE'd in 2017, DW is still working 2-3 more years. We are not touching our portfolio now.
My though was to plan (of course) for a SWR, say 4% when DW retires. And then sleep well on growth over that if it happens. But then have a "go play" threshold if the markets do very well in a given month/quarter/whatever and go treat yourself to something. Like budget for 4%, leave anything up to 6%, but say, anything over 6% growth for a given period is play money.
Might be some tax sting on that, but life's short..... Been calculating growth on the portfolio monthly and annualized, we are pretty squarely in the 7's with an AA of around 30/70. This over the last year and a half.
Thoughts?