Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Old 01-24-2016, 12:36 PM   #121
Moderator Emeritus
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 47,473
Quote:
Originally Posted by Meadbh View Post
Exactly. You gotta live somewhere, and unless that somewhere is under a bridge, there's going to be a financial cost involved.
Right. I just prefer to pay for my house outright, and then take a smaller annual withdrawal (that doesn't include rent or mortgage) from a similarly smaller nestegg (smaller because I paid for the house in cash).

The recommended WR isn't affected AFAIK.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.

Happily retired since 2009, at age 61. Best years of my life by far!
W2R is online now   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-24-2016, 12:42 PM   #122
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2006
Posts: 11,401
Quote:
Originally Posted by W2R View Post
The recommended WR isn't affected AFAIK.
True, but your house is an asset that you could sell if you needed the money for residential long term care. Renters don't have that option.
Meadbh is offline   Reply With Quote
Old 01-24-2016, 01:20 PM   #123
Moderator Emeritus
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 47,473
Quote:
Originally Posted by Meadbh View Post
True, but your house is an asset that you could sell if you needed the money for residential long term care. Renters don't have that option.
I suppose. We do have to live somewhere, though, and residential long term care can involve buying into a CCRC and/or renting, so I am thinking that one is still faced with the buy/rent/pay-off-the-housing dilemma.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.

Happily retired since 2009, at age 61. Best years of my life by far!
W2R is online now   Reply With Quote
Old 02-22-2016, 04:14 PM   #124
Thinks s/he gets paid by the post
 
Join Date: Oct 2012
Location: Reno
Posts: 1,331
I'm planning a similar 5-6.5% withdrawal rate in 3 years and for 3-4 years until I'm 64 and eligible for early SS. If the portfolio is high enough to take a 4% at that point, I'll defer until full SS; if not, I'll consider taking early after considering the RMD at 70.5.
I'm currently on "modified employment" that pays 40% of my prior salary to work part-time, pretty much on my own schedule, and DW is younger and will work longer, although at about 60% of her salary before we moved from Houston to here. I may get extended at least one more year, so unlike what I initially planned, I probably won't start making withdrawals until 2018, which probably will allow me to boost the withdrawal rate a little more. The joker in the pack is if DW loses her job, but my plan is for her to stop when I did, at 57. That's when the 6.5% to 7% rate would kick in, for 3-4 years.


Quote:
Originally Posted by REWahoo View Post
MuirWannabe posted a link to this old thread so I thought I would update my chart to show where we are after 10.5 years of retirement. The chart is explained at the beginning of this thread.

Our calendar year withdrawal rates to date shown as a percentage of our initial portfolio value the day we retired in 2005:

Year 1: 4.8%
Year 2: 9.8%
Year 3: 7.9%
Year 4: 6.1% (SS begins for me)
Year 5: 5.4% (SS begins for DW)
Year 6: 4.2%
Year 7: 3.9%
Year 8: 3.5%
Year 9: 3.7%
Year 10: 4.5%

As you can see from the jump in our withdrawal rate this year, we've loosened up the purse strings a bit.

Still, so far, so good...
RobLJ is offline   Reply With Quote
Old 02-22-2016, 08:15 PM   #125
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,008
Quote:
Originally Posted by REWahoo View Post
MuirWannabe posted a link to this old thread so I thought I would update my chart to show where we are after 10.5 years of retirement. The chart is explained at the beginning of this thread.

Our calendar year withdrawal rates to date shown as a percentage of our initial portfolio value the day we retired in 2005:

Year 1: 4.8%
Year 2: 9.8%
Year 3: 7.9%
Year 4: 6.1% (SS begins for me)
Year 5: 5.4% (SS begins for DW)
Year 6: 4.2%
Year 7: 3.9%
Year 8: 3.5%
Year 9: 3.7%
Year 10: 4.5%

As you can see from the jump in our withdrawal rate this year, we've loosened up the purse strings a bit.

Still, so far, so good...
Isn't it actually that your portfolio shrank in 2015? It dropped due to your withdrawal at the beginning, then probably went down some due to market drops.
__________________
Retired since summer 1999.
audreyh1 is online now   Reply With Quote
Old 02-22-2016, 09:13 PM   #126
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,004
Quote:
Originally Posted by audreyh1 View Post
Isn't it actually that your portfolio shrank in 2015? It dropped due to your withdrawal at the beginning, then probably went down some due to market drops.
The graph in post #91 shows how my portfolio has performed (relative to the three FIRECalc examples) since 2005. The 2015 portion of the line has a slightly downward slope.
__________________
Numbers is hard
REWahoo is offline   Reply With Quote
Old 02-22-2016, 09:49 PM   #127
Thinks s/he gets paid by the post
Al in Ohio's Avatar
 
Join Date: Jun 2013
Location: Columbus
Posts: 1,118
I would assume this scenario is not based on a bucket strategy where at least 2-3 years of income is set aside in cash accounts to be used before mid and long term investment buckets?


Sent from my iPad using Early Retirement Forum
__________________
Ohio REFI PE ENG and Investor as of 2016
Al in Ohio is offline   Reply With Quote
Old 02-23-2016, 06:28 AM   #128
Moderator
rodi's Avatar
 
Join Date: Apr 2012
Location: San Diego
Posts: 14,171
Quote:
Originally Posted by Al in Ohio View Post
I would assume this scenario is not based on a bucket strategy where at least 2-3 years of income is set aside in cash accounts to be used before mid and long term investment buckets?


Sent from my iPad using Early Retirement Forum
Don't most bucket strategies have a plan for refilling the cash bucket along the way...

In other words - the bucket strategy is just a normal asset allocation with the cash/fixed portion being the cash bucket.

If you just use up the cash bucket, without refilling it - what happens if the market is down when you run out of cash?
__________________
Retired June 2014. No longer an enginerd - now I'm just a nerd.
micro pensions 6%, rental income 20%
rodi is offline   Reply With Quote
Old 08-08-2017, 12:40 PM   #129
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,004
Update:

Since there was some recent discussion of this old thread I thought I would update the graph showing where I stand after 12 years of retirement.

Note that this reflects nominal dollars - no adjustment for inflation.
Attached Images
File Type: jpg REW 12 year plot.jpg (49.9 KB, 103 views)
__________________
Numbers is hard
REWahoo is offline   Reply With Quote
Old 08-08-2017, 12:47 PM   #130
Moderator Emeritus
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 47,473
Quote:
Originally Posted by REWahoo View Post
Update:

Since there was some recent discussion of this old thread I thought I would update the graph showing where I stand after 12 years of retirement.

Note that this reflects nominal dollars - no adjustment for inflation.
Excellent, REWahoo! This is sure encouraging.

(Just to remind people with memories as hazy as mine, the origin/meaning of these lines is explained in the first post of this thread.)
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.

Happily retired since 2009, at age 61. Best years of my life by far!
W2R is online now   Reply With Quote
Old 08-08-2017, 01:28 PM   #131
Thinks s/he gets paid by the post
David1961's Avatar
 
Join Date: Jul 2007
Posts: 1,085
Thanks. Great news. Just to make sure I understand, is the green line the best possible outcome in Fire Calc, the red line the worst, and the blue line the nominal or average?

Would be interesting to know if you look at all the scenarios after 12 years, what percentile are you at?
David1961 is offline   Reply With Quote
Old 08-08-2017, 01:32 PM   #132
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,004
Quote:
Originally Posted by David1961 View Post
Thanks. Great news. Just to make sure I understand, is the green line the best possible outcome in Fire Calc, the red line the worst, and the blue line the nominal or average?
None of the above. The Green line is Bob, the blue line is Betty and the red line is Bill.

The basis of the graph is found in the "real numbers" example of How FIRECalc Works, found here: FIRECalc: Why another retirement calculator?

An explanation of my plot on the graph is found in the first post on this thread.
__________________
Numbers is hard
REWahoo is offline   Reply With Quote
Old 08-08-2017, 01:36 PM   #133
Moderator
braumeister's Avatar
 
Join Date: Feb 2010
Location: Flyover country
Posts: 25,199
I'll bet you're looking forward to that big leap after the 21 year mark!
__________________
I thought growing old would take longer.
braumeister is offline   Reply With Quote
Old 08-08-2017, 01:41 PM   #134
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,004
Quote:
Originally Posted by braumeister View Post
I'll bet you're looking forward to that big leap after the 21 year mark!
Yep, I'm hoping I'm not taking a dirt nap by then the two decades I'll have spent setting it up will really pay off!
__________________
Numbers is hard
REWahoo is offline   Reply With Quote
Old 08-08-2017, 01:43 PM   #135
Thinks s/he gets paid by the post
Rustward's Avatar
 
Join Date: Apr 2006
Posts: 1,684
Quote:
Originally Posted by braumeister View Post
I'll bet you're looking forward to that big leap after the 21 year mark!
Would that be predicting the future?
Rustward is offline   Reply With Quote
Old 08-08-2017, 04:18 PM   #136
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,266
Quote:
Originally Posted by W2R View Post
Excellent, REWahoo! This is sure encouraging.

(Just to remind people with memories as hazy as mine, the origin/meaning of these lines is explained in the first post of this thread.)
FYI:
Quote:
Shown here are the year-end balances of three identical portfolios. One starts in 1973 (red), another in 1974 (blue), and the third in 1975 (green).
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56
pb4uski is offline   Reply With Quote
Old 08-08-2017, 04:26 PM   #137
Thinks s/he gets paid by the post
 
Join Date: Feb 2007
Posts: 2,525
Quote:
Originally Posted by REWahoo View Post
Update:

Since there was some recent discussion of this old thread I thought I would update the graph showing where I stand after 12 years of retirement.

Note that this reflects nominal dollars - no adjustment for inflation.
Good job! are Mr & Mrs Wellesley/Wellington still in your employ?
ejman is online now   Reply With Quote
Old 08-08-2017, 04:36 PM   #138
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2003
Location: Kansas City
Posts: 7,968
Quote:
Originally Posted by REWahoo View Post
Yep, I'm hoping I'm not taking a dirt nap by then the two decades I'll have spent setting it up will really pay off!
: I cheated. After two decades I married and the second round came with a pension, portfolio and a farm. Plus my first two decades I had some temp work, rental RE sold and consumed not to mention SS, a small pension and of course some -heh,heh- psst Wellesley.

Yours is the better chart.

heh heh heh - I am happy to say my 'yes but' has been wrong most of the time or at least conservative the last 24 years while the 2-6%, 4% target withdrawal and stay the course manta has held up well. My shift to Target Retirement 2015 and 'few good stocks in 2006 has been successfully boring.
unclemick is offline   Reply With Quote
Old 08-08-2017, 04:55 PM   #139
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,004
Quote:
Originally Posted by ejman View Post
are Mr & Mrs Wellesley/Wellington still in your employ?
Yes, they are carrying 2/3 of the load for me.
__________________
Numbers is hard
REWahoo is offline   Reply With Quote
Old 08-09-2017, 08:48 AM   #140
Full time employment: Posting here.
Carpediem's Avatar
 
Join Date: Aug 2016
Posts: 770
Quote:
Originally Posted by REWahoo View Post
Yes, they are carrying 2/3 of the load for me.
Are you weighted more on the Wellesley side or the Wellington side? I too have them and often question myself if I should tilt to one side or the other or go 50/50. Right now, I'm heavier on the Wellington side.
Carpediem is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


» Quick Links

 
All times are GMT -6. The time now is 08:10 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.