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Old 06-05-2017, 02:20 PM   #121
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Amazed at how many here have 40, 50 or 100 X annual expenses in nest egg. I'm 60, wife is 64, and we are planning on more like 25. Wish us luck! (gulp)
We are currently only at 13X expenses and might end up at 15x in a couple of years when DW stops working at 62. But, Firecalc has us at 95% and we could fairly easily cut our expenses once our last kid is off the payroll in a few years.

But man, reading all of these responses makes me feel like I should be getting food stamps or something.
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Old 06-05-2017, 03:06 PM   #122
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But man, reading all of these responses makes me feel like I should be getting food stamps or something.
I'm with you! After reading this thread for awhile, I thought "who am I kidding" and closed my retirement calculator software. Now I'm thinking I better keep working til 65.
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Old 06-05-2017, 03:11 PM   #123
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33X annual expenses, at age 50.

That was our number. Still working part time, so now up to 36X.
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How big was your nest egg when you FIRE'd?
Old 06-05-2017, 03:12 PM   #124
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How big was your nest egg when you FIRE'd?

Oh, hmm, I suppose bigger than this, smaller than that...
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Old 06-05-2017, 03:37 PM   #125
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I'm not on food stamps but I like to stockpile staples on sale or clearance and have other ways to bring in extra income or save money. Once SS kicks, combined with pensions, my little side ventures will help keep our withdrawal rate at around .5%.
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Old 06-05-2017, 06:29 PM   #126
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I'm with you! After reading this thread for awhile, I thought "who am I kidding" and closed my retirement calculator software. Now I'm thinking I better keep working til 65.
hahaha right?
I get the whole sequence risk thing, but I just think people are too conservative . That said, if we get 10-15 years of really less than average returns from the stock market I'm screwed....will see....
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Old 06-05-2017, 07:22 PM   #127
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Pd off house
Pension = base needs + 2 trips a yr (net 2319m)
Also 685k

Think I'm out for good now
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Old 06-05-2017, 08:19 PM   #128
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D'oh!

You're right - I missed that it was a monthly payment, not annual. The amount of $1.2 million invested is much closer.


Im going to quit looking at the annuity calculator because my pension "net worth" goes down each year despite the payment being larger. I am not willing to admit it, but that calculator gets this crazy idea I am a year closer to dying each year that passes.
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Old 06-06-2017, 01:50 AM   #129
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Nest egg currently at 51x expenses (very little travel), but with a kid at home, ER not a possibility till Jr. reaches college (~5 years). Future ER travel may offset current kid expenses, so I expect the expenses to remain the same so the above multiple to remain unless of course, market continues to reward all of us...and keep increasing the multiple. Am happy at my current ratio but am amazed at folks over 60x multiple! Guys, loosen up your purse strings....
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Old 06-06-2017, 04:24 AM   #130
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my nest egg has grown $16,000 in the last 7 months. I've been retired 2 years and have not needed to touch it at all. i'm still saving to my other cash spots too...not my nest egg. I just can't decide what to buy next new 2015 bike and 2016 Transit van paid cash. I owe a little on the vette but I cant justify taking 7% money to pay off a 1.9% loan.
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Old 06-06-2017, 05:15 AM   #131
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I'm at 1.5% including pension, 2.2% if no pension (no COLA), too young for SS. Will spend more on travel budget next year.
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Old 06-06-2017, 06:59 AM   #132
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I know what you mean. There are a lot of very, very wealthy people here... and some of them are very, very frugal to boot. You need one or both of those factors to get the 100x ratios. Not all of us can do that.

We only have 20x our total annual spend in our nest egg. But we have 38x our current withdrawal... and my SS is still to come. (DH is already collecting, I have micro pensions, and we have a rental property - that covers almost half of our spending.) I don't worry about retiring with a comparably small nest egg compared to others here because I have enough for *us*.... and our WR is less than 3% which should be safe unless a meteor strikes...
Yes, agree. I'm a little surprised at the low draw percentages too. Suspect it might be that the nest egg doesn't provide a large proportion of retirement spending so isn't critical to lifestyle, as in your case. I would be quite surprised if someone with a large portfolio(say mid 7 figures) isn't taking advantage of it with a WR at least in 2.5-4.0% range. Otherwise their heirs will be very rich indeed.
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Old 06-06-2017, 07:24 AM   #133
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Not counting 100% equity in a modest house in a lower middle-class neighborhood, or the value of a meager corporate pension, or the expected value of social security starting twelve years later, I retired with about $750,000 in August, 1993. Correcting for inflation, that has present purchasing power of a little over $1,250,000, a million and a quarter. Since I don't buy or sell in response to market volatility, and most of my financial assets are in S&P500 or total U.S. market index funds, and I don't spend a lot, that was plenty. YMMV Best wishes.
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Old 06-06-2017, 08:04 AM   #134
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Nest egg at retirement was one third the size it is now, after raising two sons in last 17 years. But I have decent pension that met (very) basic living expenses so only tap nest egg for vacations and newer cars, house remodeling, occasional appliance replacement. I have no draw down plan, it is one huge contingency fund. College costs will of course put a dent in it over the next 4-5 years.
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Old 06-06-2017, 08:16 AM   #135
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Yes, agree. I'm a little surprised at the low draw percentages too. Suspect it might be that the nest egg doesn't provide a large proportion of retirement spending so isn't critical to lifestyle, as in your case. I would be quite surprised if someone with a large portfolio(say mid 7 figures) isn't taking advantage of it with a WR at least in 2.5-4.0% range. Otherwise their heirs will be very rich indeed.
We fall squarely into that category, with a mid-upper seven figure balance and a WD of 1.4%, and no immediate heirs. But as I've mentioned previously in other threads on this topic, we haven't upped spending much yet (I'm 58, DW is 49) due to old habits and a desire to grow portfolio into eight figures. We're living very comfortably but perhaps because the bulk of it was inherited, I also feel a desire to 'add value' to it. It's only recently that I felt that the windfall is truly ours now. I'm sure some will be left to our favorite charities, but once I hit my sixties, we'll be adjusting.
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Old 06-06-2017, 08:23 AM   #136
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Mmmmm, I wonder if the active members of ER has transitioned from folks who are borderline in considering early retirement or staying retired to folks with significantly growing nest eggs.

I know the bull market of the last 6-7 years has done wonders for my nest egg such that I've significantly loosens up on smaller discretionary spending.....slowly learning to not sweat the smaller stuff, which my LBYM nature normally did in the past.
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Old 06-06-2017, 08:27 AM   #137
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We fall squarely into that category, with a mid-upper seven figure balance and a WD of 1.4%, and no immediate heirs. But as I've mentioned previously in other threads on this topic, we haven't upped spending much yet (I'm 58, DW is 49) due to old habits and a desire to grow portfolio into eight figures. We're living very comfortably but perhaps because the bulk of it was inherited, I also feel a desire to 'add value' to it. It's only recently that I felt that the windfall is truly ours now. I'm sure some will be left to our favorite charities.
Understand. But why do you feel compelled to grow the portfolio into 8 figures? Is there some significance to that figure other than the number of zero's? I suspect that with such a low WR and large portfolio, and relatively young age, you will easily achieve your goal. Agree, also, that once you have gotten comfortable with a certain lifestyle and spending level, it isn't easy to up the spend. In any event you are in an enviable position. Good for you.
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Old 06-06-2017, 08:49 AM   #138
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Yes that is the only reason I include the pension in my asset allocation. It has worked out really well for 12 of the 14 years of retirement! I do the NPV calculation. But aside from that, I think deducting it from your SWR is easier and just as accurate. I have 4 pensions between DW and I that I handle the same way.
Make sense to me.

I am still 18 to 24 months out, but when I see the 30x, 60x, 100x numbers quoted here I begin to suffer asset envy and drive a full size pickup to compensate.

But when I subtract my projected pension and my wife's current SSDI from my projected expenses at ER, I will be at about 16x expenses during the 3 to 7 years I bridge the gap between ER and starting SoSec. Once I start SoSec, and then hit Medicare age, what remains of my nest egg is projected to be up there in the 20-25x range depending on obvious market variables and how long I wait to start SoSec. But once I start SoSec and am on Medicare, all expenses plus play money will be covered by pension + SoSec with the exception of the effects of inflation on my non-COLA'd pension. Then the nest egg becomes my COLA fund, extra play money and emergency money.

FireCalc and i-ORP both seem very confident in DW and my chances for success. Just another example of how our savings and revenue streams can be very different but still help us individually reach very similar goals.
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Old 06-06-2017, 08:53 AM   #139
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Understand. But why do you feel compelled to grow the portfolio into 8 figures? Is there some significance to that figure other than the number of zero's?
Good question, and I think it's perhaps related to my previous point, in that I would like to add value to something that was gifted to me, and to sort of honor the legacy by building on it. Agree the 8 figure number is somewhat arbitrary, it may be that it appears within reach and is a good motivator. I know from my own experience there's a lot of complex emotional factors involved with a large inheritance. It does feel that I'm still working through some of these.
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Old 06-06-2017, 08:55 AM   #140
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Understand. But why do you feel compelled to grow the portfolio into 8 figures? Is there some significance to that figure other than the number of zero's?
I was wondering exactly the same thing. Other than an arbitrary milestone of having $10 million, or being able to say "I'm a decamillionaire", what is the importance of that number? Seems like WR should be the actual goalpost, and anything less than 2% is, IMHO, unnecessarily conservative.

[Oops, I see hesperus beat me to the punch with his reply to the original question. Slow fingers this morning.]
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