Do you have a zero withdrawal rate?

[daylatedollarshort]

We don't have huge pensions but we are freedom is low overhead types. So for us low overhead means living on about half of what we could. We don't buy a lot of consumer stuff and we're cheap dates.

[copyright1997reloaded]

Late to the thread because I've been busy w*rking. (Week 2 of the new school year.) Assuming no work, I should be able to meet my ongoing expenses with my old mega-corp pension plus social security (once I reach 62). But I don't because I spend more than I need to if I were serious about the budget. And I won't because I intend to defer social security - at least while I continue to work and likely after that in order to do some Roth conversions. Eventually I hope to be in the position where my normal operating expenses are met by pension + social security income flows.

[Rustic23]

My real RMD is at a SWR of .75%. I believe my kids will end up with the IRA's. I have know idea if there will be any money left in the IRA, but there will be in the taxable account.

[bada bing]

My retirement spending plans include getting to the possibility of a comfortable "zero withdrawal rate" budget at age 70, when I'll start SS and deferred pension. My reason is for protection against cognitive decline and from relatives who may be willing to "help out" on the spending front. Strictly from a financial perspective, lump sum of my pension would make sense, but I have observed in solo aging male relatives that guaranteed income has some protection from pilot induced errors that can't be ignored.

For the next 9 years, until age 70, I'm guessing my WR might go as high as 6%. Maybe even more. Looking forward to it

[freetodream]

The zero withdrawal rate has been working for us until we have a large expense like a car, vacation or something else above our "normal" expenses.

[gerntz]

- Have to withdraw RMD. Part of it goes to charities. Rest gets reinvested.
- Gift shares of stock to family members from time to time, so that's withdrawal.
- Otherwise, live off SS, dividends & interest, & rental income. No pension.

[Midpack]

Quote:

Originally Posted by Rustic23 My real RMD is at a SWR of .75%. I believe my kids will end up with the IRA's. I have know idea if there will be any money left in the IRA, but there will be in the taxable account.

With respect and without malice, FIFY.

Quote:

Originally Posted by gerntz - Have to withdraw RMD. Part of it goes to charities. Rest gets reinvested. - Gift shares of stock to family members from time to time, so that's withdrawal. - Otherwise, live off SS, dividends & interest, & rental income. No pension.

Same here, we’ve lived off dividends and interest only so far, no pension and haven’t started Soc Sec yet. RMDs still 5-7 years away. But the OP had a “different” definition of “zero withdrawal.”

[RobbieB]

Yeah, you can have a one hundred dollar CD portfolio and live off your pension and SS with a zero WDR. You can be even stackin' the extra for a negative rate.

Woo-hoo!

[eroscott]

Quote:

Originally Posted by ivinsfan Why do you care? It's not one size fits all.

Yes, unclear that the OPs intention is? Bragging perhaps It would be darn funny to include an Annuity if you ask me. Otherwise, anyone withdrawing from their IRAs could do that ... just buy an annuity and state you make no withdrawals from your 'investments'. HAHAHA

[street]

Quote:

Originally Posted by RobbieB Yeah, you can have a one hundred dollar CD portfolio and live off your pension and SS with a zero WDR. You can be even stackin' the extra for a negative rate. Woo-hoo!

LOL! Absolutely true.

[calmloki]

I'm tickled every time my SS hits the bank - all $215 of it. OTOH, been on SS since 62 and coming right up on 70 this year, so that's 8 years of spendable money plus what gets taken for medicare. No pensions or annuities or IRA/Roth stuff. Our homes and rentals are free and clear, we don't take anything out of the money we have in Vanguard, and I'd be hard pressed to guess our annual spending within $10k. Loans and property sales and rentals and interest on CDs and savings keep us plenty solvent and our lifestyle also conspires to make our net worth grow by a silly amount each year. Just a game, like taking advantage of credit card/savings bonuses, which I do, because why not.

[Oversoul]

Quote:

Originally Posted by Floridatennisplayer Curious who else has a zero withdrawal rate. Income that meets or exceeds expenses.

My spouse and I don't know what to do with our SS, let alone any investment money so, I guess you could say our withdrawal rate is zero.
We just posted another thread about this. Maybe you have some suggestions. We aren't sure what we should be doing.....if anything.

[teejayevans]

Quote:

Originally Posted by Oversoul My spouse and I don't know what to do with our SS, let alone any investment money so...

Let me give you my address where you can send a check of your “excess” money.

[Oversoul]

Quote:

Originally Posted by teejayevans Let me give you my address where you can send a check of your “excess” money.

Ha ha.....I know, many people probably wish they had this problem but it is a very real issue. After you've spent your life sacrificing & saving, you have a responsibility to do something with that money after you die.
Being young & broke used to keep me up at night.
Now, being old & not broke keeps me up at night.


There's no winning at this.


Stay well.

[GenXguy]

Quote:

Originally Posted by Oversoul After you've spent your life sacrificing & saving, you have a responsibility to do something with that money after you die.

After you die, it will be too late. Because you will be dead. But then, you probably won't care.

[Oversoul]

Quote:

Originally Posted by GenXguy After you die, it will be too late. Because you will be dead. But then, you probably won't care.

Of course, you are correct. But at this period in life it is troubling to have investments that you know you won't use but that you'd like to do some good when you're gone. And we certainly don't want it to end up in the hands of the government for some agency to squander away on something we may have been opposed to in life.


Stay well.

[Dtail]

Well always saving every year, but also spending quite a bit, we had no issues moving into the retirement spending mode, while still keeping a detailed budget/spending log each year.
This works for us.

[ivinsfan]

Quote:

Originally Posted by Oversoul Ha ha.....I know, many people probably wish they had this problem but it is a very real issue. After you've spent your life sacrificing & saving, you have a responsibility to do something with that money after you die. Being young & broke used to keep me up at night. Now, being old & not broke keeps me up at night. There's no winning at this. Stay well.

If you are serious, this is sad....

[rk911]

Quote:

Originally Posted by Oversoul ...After you've spent your life sacrificing & saving, you have a responsibility to do something with that money after you die...

such as? i can’t imagine anyone not making any arrangements.

[aja8888]

No pension, just SS and RMD's (both over 70).

No debts, but healthcare costs are filling in for those. Dental expenses in 2017 & 2018 could have bought a new Ford F150 Pickup truck, cash.

RMD withdrawal rate is about 4%. Between that and SS, we cover all expenses, but are not living "high on the Hog" so to say.