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Old 12-19-2017, 08:20 AM   #21
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Thanks, those are interesting numbers 10M, 3% withdrawal rate. Why 3%, where is that coming from? Is there some research somewhere showing this?

If I do 3% of 10M = 300k per year. -> 33 years to spend 10M.
Retiring at say 45 -> out of $ at 78.

This number assumes you don't make any return on $ or don't have any other $ coming in? I see this realistic if one becomes a vegetable but not really otherwise.

As far as expense go we love to eat, travel and I love my boat so things add up.

As far as taxes go, 5M is after tax, I can go to bank today and withdraw it if I want. There is no tax on this (unless I'm missing something somewhere).

Regards
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Old 12-19-2017, 08:30 AM   #22
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Originally Posted by Ticker314a View Post

Wife is extremely against the idea of me taking it less seriously. I'm all for it


D
As others have referred to, this is your biggest issue. You can always adjust 4%, 3.5%, 3%, but if your basic values differ, you have a greater issue than the percentage. IMHO, This is where your work needs to be.

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Old 12-19-2017, 09:07 AM   #23
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Originally Posted by Ticker314a View Post
Thanks, those are interesting numbers 10M, 3% withdrawal rate. Why 3%, where is that coming from? Is there some research somewhere showing this?

If I do 3% of 10M = 300k per year. -> 33 years to spend 10M.
Retiring at say 45 -> out of $ at 78.

This number assumes you don't make any return on $ or don't have any other $ coming in? I see this realistic if one becomes a vegetable but not really otherwise.

As far as expense go we love to eat, travel and I love my boat so things add up.

As far as taxes go, 5M is after tax, I can go to bank today and withdraw it if I want. There is no tax on this (unless I'm missing something somewhere).

Regards
In addition to convincing your spouse, I think you have a lot of work to do.
$5M "in the bank". The BANK? I'm hoping you mean invested with someone like Fido, Vanguard or TRP.
No 401K or IRA? All after tax?
"Is there research showing where 3% is a SWR?" Red light!

I think you need to do a few years of digging into all of this. This forum can help a lot but IMO you need more personalized professional help here considering your age, level of assets and (respectfully) your apparent level of financial inexperience.
Find a fee only financial adviser. A few hundred bucks will go a long way.
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Old 12-19-2017, 10:24 AM   #24
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Old 12-19-2017, 11:41 AM   #25
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His safe WR is most likely much less than $165K as his 5.5-6M NW would include his home equity. Maybe the unknown $500K is the equity?
Hi and welcome. Well, you may be where I am in 4 years as I am 46 DW 36 and three kids 8, 6, 5. We just hit $10mm net worth with $1.8mm in real estate, $1.35 set aside for kids college.

I ran the firecalc recently on a $6.7mm portfolio spending 240k per year which includes taxes (our portfolio outside college actually $7.35mm but I assume I pay off all debt which entail only our $600k mortgage/HELOC) and leave $50k cash in the bank)

I have to say, I feel like the "safe" withdrawal rate for us is 3.5% but with two caveats- we reduce spending by 10% when we sell the big house when the last goes off to college and we have 81% invested in very diversified equities.

Maybe in 4 years things will look similar to us - the firecalc at 99.1% makes me feel very comfortable as we would likely cut our vaca budget or country club which totals $40k a year somewhat if we entered a depression.

I also worry about leaving too much to the kids but you can also give to charity as our average end net worth is close to $26mm at 87 using 3.5% withdrawal. Hope this helps!
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Old 12-19-2017, 03:09 PM   #26
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Originally Posted by Ticker314a View Post
Thanks, those are interesting numbers 10M, 3% withdrawal rate. Why 3%, where is that coming from? Is there some research somewhere showing this?

If I do 3% of 10M = 300k per year. -> 33 years to spend 10M.
Retiring at say 45 -> out of $ at 78.

This number assumes you don't make any return on $ or don't have any other $ coming in? I see this realistic if one becomes a vegetable but not really otherwise.

As far as expense go we love to eat, travel and I love my boat so things add up.
Next time you are on your boat or out eating, take along this as reading material and you'll learn all you need:

"How to Make Your Money Last: The Indispensable Retirement Guide"

https://www.amazon.com/gp/product/B0...?ie=UTF8&psc=1
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Old 12-19-2017, 03:17 PM   #27
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Yep , I'm wondering how so many got hooked.
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Old 12-19-2017, 03:28 PM   #28
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Yep , I'm wondering how so many got hooked.
By the looks of the responses, I don't think anyone was hooked per se - I'm guessing a new retirement hobby now exists: responding to forum trolls.
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Old 12-20-2017, 05:40 AM   #29
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Originally Posted by Ticker314a View Post
Thanks, those are interesting numbers 10M, 3% withdrawal rate. Why 3%, where is that coming from? Is there some research somewhere showing this?

If I do 3% of 10M = 300k per year. -> 33 years to spend 10M.
Retiring at say 45 -> out of $ at 78.

This number assumes you don't make any return on $ or don't have any other $ coming in? I see this realistic if one becomes a vegetable but not really otherwise.
A 4% WR is a long standing recommendation for a high probability of success, 20-30 year retirement, assuming historical rates of return, which includes 10-11% per year from equities over the last several decades. You are looking at perhaps 40 years, have not considered inflation (which even when low adds up over time), and with equity valuations high and productivity growth low, historical returns should not be presumed. Thus 3% WR.
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Old 12-20-2017, 10:37 AM   #30
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None of them little fishies has MY name on them. All you responders are too kind.
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Old 12-21-2017, 12:42 PM   #31
Confused about dryer sheets
 
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Thank you super useful.






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Originally Posted by StuckinCT View Post
Hi and welcome. Well, you may be where I am in 4 years as I am 46 DW 36 and three kids 8, 6, 5. We just hit $10mm net worth with $1.8mm in real estate, $1.35 set aside for kids college.

I ran the firecalc recently on a $6.7mm portfolio spending 240k per year which includes taxes (our portfolio outside college actually $7.35mm but I assume I pay off all debt which entail only our $600k mortgage/HELOC) and leave $50k cash in the bank)

I have to say, I feel like the "safe" withdrawal rate for us is 3.5% but with two caveats- we reduce spending by 10% when we sell the big house when the last goes off to college and we have 81% invested in very diversified equities.

Maybe in 4 years things will look similar to us - the firecalc at 99.1% makes me feel very comfortable as we would likely cut our vaca budget or country club which totals $40k a year somewhat if we entered a depression.

I also worry about leaving too much to the kids but you can also give to charity as our average end net worth is close to $26mm at 87 using 3.5% withdrawal. Hope this helps!
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Old 12-21-2017, 12:45 PM   #32
Confused about dryer sheets
 
Join Date: Dec 2017
Location: Redwood CIty
Posts: 6
Thanks, did some reading on the topic. Didn't know about the 4% rule.




Quote:
Originally Posted by DrRoy View Post
A 4% WR is a long standing recommendation for a high probability of success, 20-30 year retirement, assuming historical rates of return, which includes 10-11% per year from equities over the last several decades. You are looking at perhaps 40 years, have not considered inflation (which even when low adds up over time), and with equity valuations high and productivity growth low, historical returns should not be presumed. Thus 3% WR.
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