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Lucky with SRR
Old 08-08-2021, 06:26 AM   #1
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Lucky with SRR

I retired (for the first time) at the end of Dec 2015. About 7 months later I received a job offer I didn't refuse. It was a small commitment (about 20-30 hours a month) and didn't pay a lot (at that time just under $2K/month). My portfolio was almost entirely in 401(k) converted to tIRA funds. I determined I could and should delay SS to age 70, should convert tIRA to ROTH to the top of the 22% tax bracket, and could use the VPW method to withdraw more than 4% my first year and COL adjustments after that.

Home improvements and travel expenses exceeded my expectations. And in the 5 years 8 months since Jan 1 2016 our withdrawals have averaged 5.8% which is .5% more than the VPW method recommended. Despite that our portfolio has increased 26.8%. Of course, we would have reduced expenditures had the market not performed so well. Just lucky that the market performed as it did.

I'm going to retire again at the end of October. I think it will stick this time! I'm ready to no longer be responsible and now that travel is easier than at the height of the pandemic, I want the freedom. The loss of that part-time income (now $2.5K/month) will mean I can convert a little more tIRA to ROTH. And in the case of a major bear market event, I'll be a year past SS-PIA and my monthly SS would be more than the job income I am foregoing.

I'm still planning to use the VPW method for withdrawals but now that home improvements are done and cars have been updated outsized expenditures are not required, just optional!

I wish you all a similar SRR story.
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Old 08-08-2021, 12:36 PM   #2
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Sounds good! Enjoy!!!
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Old 08-10-2021, 08:09 AM   #3
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I was only vaguely aware of the VPW method so looked it up in the Bogleheads wiki. Seems reasonable - especially when coordinating with SS. Here's what I found for those not familiar.

https://www.bogleheads.org/wiki/Vari...age_withdrawal
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Old 08-10-2021, 08:21 AM   #4
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Here's an article that helped me understand VPW and using it in coordination with a delay in claiming SS.

https://www.mcleanam.com/social-secu..._hsmi=23742900
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