I was reading Nords latest (outstanding) post in the Military Retirement & Financial Independence blog about Retirement Planners and Calculators (part 2 of 2). Some of the calculators Nords writes about are in Bud Hebeler's Analyze Now website. I was working through Bud's Free Retirement Planner as I inputted various different scenarios to help target the right age to RE.
Some brief background; I will have 2 COLA adjusted (military) pensions, one at 60 and the other at around 65. In addition to these 2 pensions, I have a small non-COLA adjusted pension and of course (hopefully) Social Security at 67. I also have a 401k, IRA, and Roth. As I work the calculator, I can create a scenario in which I RE at 58 and end up spending down most of my nest egg as I wait for the pensions at 60, 65, 65, and 67. What concerns me about this tactic is that my nest egg gets eroded to around one year of expenses, before it starts to grow again following the kick in of the various pensions.
I would like to hear your opinions on spending down nest eggs (well in excess of 4%/year) while waiting for pensions to start. I'm very confident the 2 military pensions will be there, a little less confident in Social Security, and not terribly confident of the small corporate pension (company has gone in and out of bankruptcy). Similarly, others may be looking to more aggressively spend down their nest eggs while waiting for their social security to increase at 67 or 70. Any advice/opinions are greatly appreciated. Thanks!
Some brief background; I will have 2 COLA adjusted (military) pensions, one at 60 and the other at around 65. In addition to these 2 pensions, I have a small non-COLA adjusted pension and of course (hopefully) Social Security at 67. I also have a 401k, IRA, and Roth. As I work the calculator, I can create a scenario in which I RE at 58 and end up spending down most of my nest egg as I wait for the pensions at 60, 65, 65, and 67. What concerns me about this tactic is that my nest egg gets eroded to around one year of expenses, before it starts to grow again following the kick in of the various pensions.
I would like to hear your opinions on spending down nest eggs (well in excess of 4%/year) while waiting for pensions to start. I'm very confident the 2 military pensions will be there, a little less confident in Social Security, and not terribly confident of the small corporate pension (company has gone in and out of bankruptcy). Similarly, others may be looking to more aggressively spend down their nest eggs while waiting for their social security to increase at 67 or 70. Any advice/opinions are greatly appreciated. Thanks!