Live And Learn
Thinks s/he gets paid by the post
Had a meeting with a portfolio manager the other day. I wanted him to "run the numbers" to see when I could ER. I gave him the details of all my holdings.
I instructed him to hold aside $350k out of the portfolio before running the numbers. The 350k will cover a new roof on my current house (probably will be needed before I ER and downsize), a new roof on my downsized house (plan on being there 40+ years !), $100k to self insure for LTC, a $60k in "bucket list vacations" and a placeholder for large home improvements (think Kitchen and Bath remodels) and replacing large appliances (including the central air units).
The porfolio manager came back with my numbers telling me I can spend 20k more per year than I had budgeted. Turns out he didn't hold the 350k aside saying I was "thinking about it wrong" as his analysis leaves a bit of "cushion" at EOL (ie: does not spend down to 0).
Am I thinking about this wrong ? Frankly I'm lazy and dont want to enter a bunch of one time expenses into a retirement planning tool. I figure I will put the 350k in a separate account and invest it and if I end up better off than planned I can add a few more mega-vacations into the picture.
I haven't gotten the new analysis with the 350k out but I suspect it will say I can "eek by" on the budget I've put together for the next 35 years (which gets me to age 85 with an 90% porfolio sucess with FIDO and 100% with Firecalc). Chances of funds lasting to 95 yo are 74% with FIDO and 82% with FireCalc.
I instructed him to hold aside $350k out of the portfolio before running the numbers. The 350k will cover a new roof on my current house (probably will be needed before I ER and downsize), a new roof on my downsized house (plan on being there 40+ years !), $100k to self insure for LTC, a $60k in "bucket list vacations" and a placeholder for large home improvements (think Kitchen and Bath remodels) and replacing large appliances (including the central air units).
The porfolio manager came back with my numbers telling me I can spend 20k more per year than I had budgeted. Turns out he didn't hold the 350k aside saying I was "thinking about it wrong" as his analysis leaves a bit of "cushion" at EOL (ie: does not spend down to 0).
Am I thinking about this wrong ? Frankly I'm lazy and dont want to enter a bunch of one time expenses into a retirement planning tool. I figure I will put the 350k in a separate account and invest it and if I end up better off than planned I can add a few more mega-vacations into the picture.
I haven't gotten the new analysis with the 350k out but I suspect it will say I can "eek by" on the budget I've put together for the next 35 years (which gets me to age 85 with an 90% porfolio sucess with FIDO and 100% with Firecalc). Chances of funds lasting to 95 yo are 74% with FIDO and 82% with FireCalc.