|
|
01-05-2016, 08:50 AM
|
#161
|
Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,473
|
Quote:
Originally Posted by kcowan
As long as it was not augmented by an intelligent woman spending a bundle to live near her best friend!
It is amazing how words can be spun to tell any story....
BTW congratulations on the good luck in finding the perfect house! Sounds like a much more practical solution than moving north.
|
Thank you! It seems to be working out wonderfully for us, and I am so happy living here. Hopefully Katrina will be a once in a lifetime disaster for us, although there are no guarantees. And yes, I love trying to twist words around like that (in jest), just for fun.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
01-05-2016, 11:26 PM
|
#162
|
Thinks s/he gets paid by the post
Join Date: Jul 2013
Posts: 1,046
|
No set budget but was pleasantly surprised to see the total expenses were $55k (about 55% of my take home too). $27k of that was mortgage and $8k was the new roof. T Not too shabby for SoCal. Now if I can keep my pay/employment for the next 10yrs without any major unforeseen set backs...and decent market returns I just might be FI by 50-52.
|
|
|
01-06-2016, 05:40 AM
|
#163
|
Recycles dryer sheets
Join Date: Nov 2013
Posts: 475
|
Quote:
Originally Posted by Corporateburnout
I also admire the folks on this board who are able to live on less than 30k for a single person and less than 50k for a couple.
|
Very impressed with people on this board.
Sent from my iPad using Tapatalk
|
|
|
01-06-2016, 07:27 AM
|
#164
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2006
Location: Pacific latitude 20/49
Posts: 7,677
|
Part of our ability to do it is all the airline points amassed during all those working years.
__________________
For the fun of it...Keith
|
|
|
01-06-2016, 08:38 AM
|
#165
|
Recycles dryer sheets
Join Date: Dec 2010
Posts: 445
|
2015 Expenses
Hard to even say. We shaved off 25% from our projected budget, but mostly because we had to "loan" in-laws that +10k. We earned from part-time work enough for the in-law issue. So are we on budget or not?
Sent from my iPad using Early Retirement Forum
|
|
|
01-17-2016, 09:52 AM
|
#166
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,007
|
OK - it takes until at least the 13th of Jan to know how much we spent in 2015, because that's the last of the credit card transactions that I download when the statement is available. I reconcile the credit card statements as well to make sure that expenses hit the right categories.
In 2015 we almost met our spending budget. We ended up being about 2.5% under budget. In 2014 our spending was way under budget, like 21% under budget. In 2013 we were about the same as 2015 - even closer to budget. Just 1.3% under which is the closest we have every come.
Our target budget hasn't changed since the late 2000s - not even adjusted for inflation. It was initially selected to be quite generous, so I'm not surprised that we haven't needed to adjust for inflation. Approximately 19% of the budget goes to family gifts and charitable donations, and we usually spend close to all of that.
One of these years I will increase our budget. Our annual withdrawal less estimated taxes has been exceeding our target budget by quite a bit for many years now. Knock on wood!!! - hopefully that continues.
__________________
Retired since summer 1999.
|
|
|
01-17-2016, 10:50 AM
|
#167
|
Moderator
Join Date: Apr 2012
Location: San Diego
Posts: 14,169
|
Quote:
Originally Posted by audreyh1
One of these years I will increase our budget. Our annual withdrawal less estimated taxes has been exceeding our target budget by quite a bit for many years now. Knock on wood!!! - hopefully that continues.
|
I'm confused. Your plan is to withdraw a lot more than your annual spending budget? Why?
__________________
Retired June 2014. No longer an enginerd - now I'm just a nerd.
micro pensions 6%, rental income 20%
|
|
|
01-17-2016, 11:50 AM
|
#168
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,007
|
Quote:
Originally Posted by rodi
I'm confused. Your plan is to withdraw a lot more than your annual spending budget? Why?
|
Actually - my comment meant that I hope the portfolio doesn't shrink so much that the withdrawal less taxes owed is less than our target budget. My income goes up and down depending on the year end portfolio value. I could potentially take a 40% hit to my income but (hopefully) it will still fund our target budget.
[Knock on wood - I don't want to tempt fate here!!!]
Or, I could say it's just that our portfolio has grown so much by now that it funds way more than our target budget. I don't reduce my planned % withdrawal just because the portfolio is growing faster than my expenses. And what if it shrinks again due to a big market sell off? Then I hope we can still meet our target budget. If not, I've still got some rainy day funds set aside to help smooth things over.
But to answer the question as asked:
Because, according to FireCalc and various other models, I can, and still have my portfolio survive for a very long time.
I consider my withdrawal to be the amount I should withdraw each year regardless of whether I choose to spend it that year or not. It's money I can now spend whenever I want.
In other words, I see the x% I withdraw each year as "I won the game - take that money off the table." I choose not to subject any surplus to market volatility. According to the models, what remains in the portfolio is enough to fund my future, so I don't need to risk any more than that in equities or other long-term investments.
It's just a different philosophy. I know I am in the minority here. Most folks prefer to reinvest any excess in order to grow their portfolio in the very long run. Whether this optimizes amounts left for heirs, or means more spending in later years, or whatever.
So my question is: Why not?
__________________
Retired since summer 1999.
|
|
|
01-17-2016, 02:55 PM
|
#169
|
Recycles dryer sheets
Join Date: Feb 2014
Posts: 188
|
We were pleasantly surprised to be under budget by $3K for the year even with two unexpected budget busters - dental and travel were double what was planned.
For 2016 we have already eliminated 2800 in planned expenses. So we are not planning on increasing our withdrawals
|
|
|
01-17-2016, 04:30 PM
|
#170
|
Moderator
Join Date: Apr 2012
Location: San Diego
Posts: 14,169
|
Audrey - thanks for explaining. I forgot you were on a variable WR. Now it makes sense.
__________________
Retired June 2014. No longer an enginerd - now I'm just a nerd.
micro pensions 6%, rental income 20%
|
|
|
01-17-2016, 04:33 PM
|
#171
|
Thinks s/he gets paid by the post
Join Date: Jul 2007
Location: St. Louis
Posts: 1,563
|
W2R any pics of the new house? I thought your old one looked sharp by the way.
|
|
|
01-17-2016, 04:39 PM
|
#172
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,007
|
Quote:
Originally Posted by rodi
Audrey - thanks for explaining. I forgot you were on a variable WR. Now it makes sense.
|
Yeah - that's really the crux of the matter.
If you use a WR thats based on % portfolio value each year, rather than one based on a starting value increased by inflation each year, what should you do if your portfolio grows faster than your spending?
Well there are several approaches, and IMO all perfectly valid. It basically depends on your short-term versus long-term goals.
And just because your portfolio grows faster than your spending for several years doesn't mean you won't get a nasty setback once in a while due to a big drop in portfolio value due to a nasty bear market - or even several years going sideways.
These things have to be carefully thought out, and I've noticed that goals are very dependent on the individual. Some see great value in a large terminal value for the portfolio and prefer to only take out what they really need to spend and pay taxes each year. Others see value in having more funds to spend or gift while they are young as long as the portfolio long-term survival is not compromised.
__________________
Retired since summer 1999.
|
|
|
01-17-2016, 05:00 PM
|
#173
|
Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,473
|
Quote:
Originally Posted by rec7
W2R any pics of the new house? I thought your old one looked sharp by the way.
|
Thank you! Here's one. I love the fact that it has an oversized two car garage with workshop and storage rooms, that it has a wonderful shower like I always wanted, and above all a great next door neighbor.
This was most of my 2015 expenses. If all real estate is "location, location, location", then I just struck gold.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
|
|
|
01-17-2016, 05:02 PM
|
#174
|
Thinks s/he gets paid by the post
Join Date: Oct 2008
Posts: 1,608
|
Very nice! I can see why you are so happy there.
|
|
|
01-17-2016, 05:03 PM
|
#175
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2006
Posts: 11,401
|
|
|
|
01-17-2016, 05:13 PM
|
#176
|
Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,473
|
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
|
|
|
01-17-2016, 05:14 PM
|
#177
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,007
|
Beautiful! Definitely has that southern Louisiana look!
__________________
Retired since summer 1999.
|
|
|
01-17-2016, 05:15 PM
|
#178
|
Moderator Emeritus
Join Date: Apr 2011
Location: Conroe, Texas
Posts: 18,645
|
Quote:
Originally Posted by Meadbh
And great curb appeal!
|
And being able to pick your neighbor!
__________________
*********Go Astros!*********
|
|
|
01-17-2016, 05:21 PM
|
#179
|
Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,473
|
Quote:
Originally Posted by audreyh1
Beautiful! Definitely has that southern Louisiana look!
|
Thank you so much!
That's the best part.
(Although the shower is a close second, shhh.)
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
|
|
|
01-17-2016, 05:38 PM
|
#180
|
Thinks s/he gets paid by the post
Join Date: Jul 2007
Location: St. Louis
Posts: 1,563
|
A nice ranch like your old house.
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|