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07-23-2007, 05:33 PM
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#21
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Moderator Emeritus
Join Date: Jun 2007
Location: At The Cafe
Posts: 6,873
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Quote:
Originally Posted by 2B
My "number" is higher than my current expenses because I want to do a lot more traveling than I do now. However, I don't expect that travel surge to continue for that many years so I have a conservative living fund covered by SS and a portion of my nest egg (4% SWR). The travel/extra fund is expected to be depleted so it's done on a Bernicke formula. At 75 I'll still have a decent amount of "extra" money available but not as much as I had when I first retire.
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2B, your plan sounds like Paul Terhorst but I may break his rule about keeping housing expenses as low as possible: One of the possibilities is that I may move into better living space and remain in an expensive area. If I do that, the additional expense will continue forever. I'm also concerned about higher-than-usual inflation. I just took a nice profit when I re-balanced on July 15 and will be watching to see which way the market goes between now and April. Thanks, 2B, I'll look into the "Bernicke formula."
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07-24-2007, 09:28 AM
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#22
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Recycles dryer sheets
Join Date: Dec 2006
Posts: 479
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Has anyone taking a greater %, like 5 or 6%, for the 1st few years until SS kicks in, then reduce your w/d rate back to 3 or 4%?
JD
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07-24-2007, 10:21 AM
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#23
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 14,183
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Quote:
Originally Posted by JohnDoe
Has anyone taking a greater %, like 5 or 6%, for the 1st few years until SS kicks in, then reduce your w/d rate back to 3 or 4%?
JD
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I'll let you know how it works...
__________________
Have Funds, Will Retire
...not doing anything of true substance...
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07-24-2007, 04:18 PM
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#24
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Thinks s/he gets paid by the post
Join Date: Mar 2006
Location: Houston
Posts: 4,337
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Quote:
Originally Posted by JohnDoe
Has anyone taking a greater %, like 5 or 6%, for the 1st few years until SS kicks in, then reduce your w/d rate back to 3 or 4%?
JD
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Do FIRECalc with SS and all your other assets included and it will work out the conservative approach. There's nothing wrong with "self annuitizing" your SS before you actually start drawing it. I have decided to attempt to defer SS until age 70 but I'll be spending more than 4% because I will be depleting assets equivalent to my SS payments. I'll intentionally lose a few hundred thou to have the spending power when I'm young enough to enjoy it. When I turn 70, I'll have the SS and what's left of my other assets.
Money is money.
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07-25-2007, 01:03 PM
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#25
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Recycles dryer sheets
Join Date: Dec 2006
Posts: 479
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Everyway I run it, the highest success rate is if we both take SS at age 62.
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07-25-2007, 04:49 PM
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#26
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Thinks s/he gets paid by the post
Join Date: Mar 2006
Location: Houston
Posts: 4,337
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Quote:
Originally Posted by JohnDoe
Everyway I run it, the highest success rate is if we both take SS at age 62.
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That's because of the length of your plan. Taking SS at 70 cuts 8 years of a much lower benefit that may be for a plan that only runs until you are 85. I look upon SS as "longevity insurance." It's COLA'd and, if all else fails, is probably enough to survive on until DW and/or I enter the nursing home.
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