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For those that have retired with =>$5M in investable assets
02-01-2016, 09:43 AM
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#1
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Recycles dryer sheets
Join Date: Jan 2008
Posts: 136
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For those that have retired with =>$5M in investable assets
How is your budget working out?
Curious to know if you end up with more money at year-end or shortfall?
Thanks in advance!
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02-01-2016, 10:29 AM
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#2
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Thinks s/he gets paid by the post
Join Date: Jun 2014
Posts: 1,069
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Quote:
Originally Posted by serie1926
How is your budget working out?
Curious to know if you end up with more money at year-end or shortfall?
Thanks in advance!
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Not sure what 5 million watermark would have to do with budget hitting.
Also not sure lot's of people would want to self identify they have 5million by responding.
Sent from my iPhone using Early Retirement Forum
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02-01-2016, 10:31 AM
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#3
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Thinks s/he gets paid by the post
Join Date: Jul 2009
Location: Miraflores,Peru
Posts: 1,992
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Who budgets? When the Champagne runs out, just order another bottle!
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02-01-2016, 10:32 AM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2005
Posts: 10,252
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People with > $5 million don't need no stinkin' budget.
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02-01-2016, 10:38 AM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2013
Location: Les Bois
Posts: 5,761
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__________________
You can't be a retirement plan actuary without a retirement plan, otherwise you lose all credibility...
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02-01-2016, 10:40 AM
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#6
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Thinks s/he gets paid by the post
Join Date: Nov 2009
Location: SF East Bay
Posts: 4,324
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Surely whether you end the year with a personal budget surplus or shortfall has more to do with whether you spend more (or less) than your income, and not with the actual dollar amount of your portfolio.
I'm scratching my head on this one.
__________________
Contentedly ER, with 3 furry friends (now, sadly, 1).
Planning my escape to the wide open spaces in my campervan (with my remaining kitty, of course!)
On a mission to become the world's second most boring man.
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02-01-2016, 10:48 AM
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#7
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Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,591
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Quote:
Originally Posted by serie1926
How is your budget working out?
Curious to know if you end up with more money at year-end or shortfall?
Thanks in advance!
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My guess is there will be quite a few responses to this post but not many will be on topic.
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02-01-2016, 10:51 AM
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#8
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Recycles dryer sheets
Join Date: Jan 2008
Posts: 136
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"My guess is there will be quite a few responses to this post but not many will be on topic."
Sure looks that way...
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02-01-2016, 10:57 AM
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#9
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,004
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Why would you say that?
__________________
Numbers is hard
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02-01-2016, 11:05 AM
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#10
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,925
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I do not have $5M, and likely will not when I retire in 5 months.
I do project my NW will be close to that in a few years, especially if my DGFs NW is included in it. It will not be in investable assets, but in rental real estate. Mostly because I have been paying off mortgages. It is very hard to buy even a cup of coffee with an apartment building.
I could sell and invest at that time, but the taxes and commissions would make $5M look more like $4M, or less. Even so, If I spend more than I make, it will not last. If I spend less, it will grow.
I have heard that $5M is a key number to being financially independent with no worries, and there is a bunch of sports figures, movie stars, lottery winners, etc. that would say otherwise.
A number like $5M is just that, a number. Without the rest of the context, it means nothing.
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
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02-01-2016, 11:11 AM
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#11
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2011
Posts: 8,366
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Quote:
Originally Posted by serie1926
Curious to know if you end up with more money at year-end or shortfall?
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Ending up with more at year-end than when started IS THE PLAN of just about everyone on this forum.
Portfolio size isn't relevant, planning is.
__________________
Living well is the best revenge!
Retired @ 52 in 2005
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02-01-2016, 11:16 AM
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#12
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2007
Posts: 13,203
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Quote:
Originally Posted by serie1926
"My guess is there will be quite a few responses to this post but not many will be on topic."
Sure looks that way...
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Maybe you'd like to expand on why you are asking only those with $5M or more?
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02-01-2016, 11:20 AM
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#13
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Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,591
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Someone with mid-seven figure portfolio has a greater portion of discretionary expenses. These are easier to reduce, so a year-end financial goal might be achieved by pushing off some expenses into the future.
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02-01-2016, 11:44 AM
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#14
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2005
Location: Chicago
Posts: 13,151
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Quote:
Originally Posted by Senator
Even so, If I spend more than I make, it will not last. .
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I wonder what you mean by that?
Of course, it will not last for eternity. But, it may last long enough. For example, FireCalc tells me my WR (increased annually by inflation) could exceed the earning level of my FIRE portfolio going forward. Eventually, in some scenarios, I'll deplete the portfolio if I live long enough. But, if historical limits continue, I'll be well over 100 yrs old when that happens.
Other eventualities might lead the FIRE portfolio to actually increase in real dollars.
It's a pesonal decision of course, but for me spending only to the point where my FIRE portfolio holds steady or grows in real dollars is way too conservative.
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
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02-01-2016, 11:51 AM
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#15
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Full time employment: Posting here.
Join Date: Mar 2010
Posts: 889
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Retiring on $5 million is pretty rough. I wouldn't recommend it.
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02-01-2016, 11:52 AM
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#16
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Dryer sheet wannabe
Join Date: May 2015
Posts: 11
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Quote:
Originally Posted by RunningBum
Maybe you'd like to expand on why you are asking only those with $5M or more?
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Probably a failed attempt to avoid off-topic comments from the riff-raff.
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02-01-2016, 11:57 AM
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#17
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2005
Location: Chicago
Posts: 13,151
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Quote:
Originally Posted by marko
Ending up with more at year-end than when started IS THE PLAN of just about everyone on this forum.
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Yes, I've noticed that trend growing the past few years.
Many people seem to be taking the outlook that the goal is to have as much or more, in real dollars, at the end as in the beginning whether you're talking a single year or the balance of your life. Whereas in earlier years on the Forum most seemed to be looking at simply not running out of money while trading it for the retirement lifestyle they enjoyed the most.
I think the proportion of folks who get more satisfaction out of not spending than spending is growing. For example, there seem to be more folks who would gain more satisfaction from staying home and not spending $10k on travel than actually doing the travel. They'd really enjoy the travel. But they'd enjoy opening the spreadsheet and seeing the unspent money there even more.
After a lifetime of intense planning and saving, seeing your portfolio grow in real terms post retirement is more satisfying than spending some money to have more experiences.
Not my view but I can understand how it can be for many.
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
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02-01-2016, 12:07 PM
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#18
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2012
Posts: 11,701
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Quote:
Originally Posted by youbet
I think the proportion of folks who get more satisfaction out of not spending than spending is growing. For example, there seem to be more folks who would gain more satisfaction from staying home and not spending $10k on travel than actually doing the travel. They'd really enjoy the travel. But they'd enjoy opening the spreadsheet and seeing the unspent money there even more.
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When you travel, it is a commitment. You won't have time to log onto e-r.org, nor time to check your spreadsheet.
Better to stay home in front of the computer or tablet. For sure.
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02-01-2016, 12:45 PM
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#19
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Thinks s/he gets paid by the post
Join Date: Oct 2015
Posts: 2,307
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02-01-2016, 12:46 PM
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#20
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2007
Posts: 14,328
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Quote:
Originally Posted by ESRwannabe
Retiring on $5 million is pretty rough. I wouldn't recommend it.
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+1 No way would I risk cutting it that close.
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