Do you have a zero withdrawal rate?

[dtbach]

I could live on SS and military pension with a 0% withdrawal rate without undue hardship but why? Heck, I'm trying to go from 3.3% to 4.0% WR but can't really spend it all (I'd do 4 cruises/vacations a year but my DW only wants 2). But I'm still working on what to spend it on.



Maybe a boat would be good. . . .

[NW-Bound]

A boat, an RV, a plane, a 2nd home, they are all good.

They help take the hot cash off your hands, and keep you busy with maintenance.

Start out small, then if it does not work, go bigger. Nothing keeps you from having more than one item either.

[RobbieB]

My boat will be in a slip next year. CA Delta fishing is great!

[NW-Bound]

Why wait till next year what you can do now?

[RobbieB]

Still in home improvement mode. Still need to sell 2 motorcycles and get the garage sorted. I've even got a box full of "boat stuff" hiding in there somewhere I need to find.

Next year will be soon enough -

[street]

I own a boat, a canoe and it is low maintenance. Ready to float the river as soon as it stops raining. I hope in the next few weeks.

If they steal it from the ranch I'll just go buy anothah because I can. LOL

[Senator]

I have been retired since 7/2016, over three years. I have not touched my portfolio and still reinvest dividends. SS is a few years away. Pension is still growing as I am waiting until age 65.

My rentals provide a lot of cash, more than I need, and I have been spending quite a bit. I travel 6+ months of the year. I have also purchased a few big ticket items, all cash. I have been doing quite a few capital improvements on them too.

Purchased a 2017 Ford F350 platinum
2015 Keystone Alpine
Florida house on 5 acres
Paid off a rental mortgage of ~$100K

I am planning on hiring out more work, and that will lower the cash available, although rents appear to keep rising.

And I may buy a horse or three...

[dm]

I quit working in 2007. Last year was the first year I made a 401k withdrawal, this year I took about 4%. We bought a couple of new cars and spent some money on the house.

Next year I don’t think we will need any of the retirement funds, unless I upgrade the plane. Which I’m probably going to do.

We could live just fine on pension and SS, I just started my SS this year at 62. That said we can live even better if we blow a little of that dough.

[RobbieB]

Yeah Baby! I took 4% of my IRA this year, what would be my age 70.5 RMD at age 64.

Blow That Dough -

[molly312]

Age 72 and almost 73. We are still at zero.

[MarieIG]

I won't have a pension or be old enough for SS, so no.

[Perryinva]

Can’t really answer as only been retired for about 3 months at 61 and have 11 months of severance to go, so still getting paid. Then after that I start Roth conversions, which technically is just funds transfer, but will also be using some until I file for SS. Once SS starts at 69, I will be zero withdrawal for a while, but then RMDs kick in which should be more than we need. So I don’t know! I don’t plan on zero withdrawal, even though I am for the next year or so. I want to spend it.

[street]

After reading all the comments IMO a high % with a 0 WR have a pension or cash flow coming monthly or are receiving SS. If no pension, no cash flow and no SS then it is a different ball game.

[Perryinva]

Right, makes sense. Maybe the OP meant to only ask true ERs and not retirees in general. But then what is anyone living on then? I don’t get it. My plan has always been to have my fixed incomes cover all my expenses and the portfolio for major fun or discretionary or disaster.

[street]

Quote:

Originally Posted by Perryinva Right, makes sense. Maybe the OP meant to only ask true ERs and not retirees in general. But then what is anyone living on then? I don’t get it. My plan has always been to have my fixed incomes cover all my expenses and the portfolio for major fun or discretionary or disaster.

This is our plan as well.

[RobbieB]

My fixed income covers my health care insurance and my direct TV bill.

[Bluegrass]

What does SIRE stand for? S____ independence retire early?

Prolly obvious, but it’s not clicking.

[street]

^ I beleive yes it does. SIRE means you have other income to support your early retirement, like rentals, SS, pension and or royalties etc. other then just a portfolio.

[SecondCor521]

Quote:

Originally Posted by Bluegrass What does SIRE stand for? S____ independence retire early? Prolly obvious, but it’s not clicking.

Secure Income, Retired Early.

http://www.early-retirement.org/foru...rum-34884.html

[Andre1969]

Quote:

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

My Mom and stepdad are doing that. They both retired back in 2011, with pensions. She had 42 years in with the federal government. He worked for the Washington Suburban Sanitary Commission, and was able to take early retirement. Between the two of them, their pension is pretty good, and they haven't had to dip into retirement savings/investments at all. In fact, Mom is about to do her first RMD, and doesn't know what to do with the money.

My grandparents, on both sides of the family, were also like that. On my Dad's side, Granddad was a railroad worker, and they used to get nice pensions. I don't know about nowadays, though. On my Mom's side, they were both federal employees. Granddad retired early, at age 55. I'm not sure how many years he had in, but it was enough. Grandmom retired at age 56, when the federal hospital she worked at shut down. But, she went back to work part time/on call at another hospital. I don't know much about the finances on my Dad's side of the family, but on Mom's side, as Grandmom got into old age, between pensions and SS, and very meager spending, she was saving a pretty good chunk of it. It wasn't until the end, that medical expenses really started eating things up. The last ~9 months of her life probably cost about $50,000, but that included remodeling the bathroom to make it wheelchair accessible, when we thought she would be coming back home, and also her funeral.

My Dad was able to make it on his pensions/SS as well. He didn't make much, as his employment had been spotty. He became a federal employee somewhat late in life, so he was under the new system. But, I think he still had about 20 years in. With that, plus SS, it pretty much covered his expenses. He lived very modestly though.

I guess the recurring theme, for my family at least, is try to find employment in a field where you get a decent pension. And stick with it. Oh, and live modestly.