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Old 02-03-2019, 04:40 PM   #141
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If you take the gig and hate it, you can always bow out. If you don’t take it, you might always wish you had.

A friend’s DH is still working at 80 and she (retired for ten years) is finally resigned to it. He loves his work and has time off whenever he wants, so they can travel a lot.

Different strokes.
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Old 02-06-2019, 11:05 PM   #142
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Originally Posted by tb001 View Post
What am I missing here? He said 300k included taxes? It would be very surprising if the majority of this $ was not invested in taxable accounts. Probably ~ a 50% cost basis, with some dividend income, so say 150k of his own money, 75k of dividend income and another 75k of capital gains. Taxes on that are pretty cheap, no? By my estimates about 15-20k, assuming capital gains taxes don’t get massively changed of course.

At 4% swr he could take 320k and I would assume he’s got another 35-40k per yr of SS income that he’s not counting in there.
Mea culpa, I missed that part about 300k including taxes. Agree completely, OP appears to be sitting pretty.
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Old 02-07-2019, 06:38 AM   #143
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OP, you are financially independent. IMO, you can continue your current spending level and be fine. So, do what makes you happy. If you enjoy work, then go back to work. I would not go back just for the money. If you truly are concerned about having enough but do not want to work, then focus on reducing spending.

Since you are recently retired, you may just be feeling the early retiree jitters that many feel. They go away with time. I have one other thought. If you have the potential to earn $1.5M per year, you may not be use to budgeting (never had to - always had a high income). If this is the case, I suspect you can reduce your expenses without much impact on your lifestyle.
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Old 02-07-2019, 06:44 PM   #144
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Mea culpa, I missed that part about 300k including taxes. Agree completely, OP appears to be sitting pretty.
Thanks Scratch....your wisdom is appreciated. This has been a subject that keeps me awake at nights and DW and I are at a crossroad. We are in Cali and my wife's mum is in Georgia and just found out open heart is necessary. I have a lovely home there and it appears I need to take advantage of it and be there. It's funny how each day reveals a new page of revelation.
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Old 02-07-2019, 06:52 PM   #145
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OP, you are financially independent. IMO, you can continue your current spending level and be fine. So, do what makes you happy. If you enjoy work, then go back to work. I would not go back just for the money. If you truly are concerned about having enough but do not want to work, then focus on reducing spending.

Since you are recently retired, you may just be feeling the early retiree jitters that many feel. They go away with time. I have one other thought. If you have the potential to earn $1.5M per year, you may not be use to budgeting (never had to - always had a high income). If this is the case, I suspect you can reduce your expenses without much impact on your lifestyle.
again a wize poster. You are right Ive never had to budget in the last 10 years and that is an issue. I grew up quite poor and know how to cut back and have plans to reduce my real estate exposure which will get be back in the comfort range. FTI, my work really never made me happy but it paid me far more than I had ever anticipated. I am having to learn how to chill and not feel the need to keep adding to the portfolio. I appreciate your thoughts.
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Old 02-08-2019, 03:54 PM   #146
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I am 63, been retired three years. I turned down $1.2 million last year because when you have enough, you have enough. And I have enough and you do too.
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Old 02-08-2019, 05:29 PM   #147
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Sounds like you need a financial advisor.

First of all, your investment should have been diversified into many different asset classes so that when the market drop or crashes, you should have some asset class that holds its value. This strategy provides "liquidity". Liquidity is overlooked by some investors. However, liquidity become vital when you are close to retirement.

When the market drops or crashes, it essentially "freezes" certain asset classes simply because seliing that asset class that lost say 30% will locks in your losses. You will also break the golden rule of "selling low".

For example, US treasuries to provide liquidity. However, some investors dismisses US treasuries because they earn so little. They become a life saver during a crash because people can live off this asset class until the other asset class recovers.

Remember buy low and sell high. Never do the opposite. With a diversified investment portfolio in many different asset classes, you can pick the one asset class that is relatively higher than the other asset class to liquidate and live on during retirement.

This is one reason that I do not like balanced funds or target fund because they comingle asset classes. However, if the market crashes 30% and your balance fund only loses 15%, you still lock in a 15% loss when you sell. On the other hand, having a separate stock fund and a separate bond fund allows you to liquidate only the bond fund and allow time for your stock fund to recover.

A financial advisor will explain the importance of having a diversified portfolio with many difference asset classes that provides liquidity.
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Old 02-08-2019, 05:41 PM   #148
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So it doesn't sound like you are loving what you are doing, in which case, the extra $3MM is at a very real cost of two of your remaining years of good health. Do you have additional things you would enjoy splurging on that that money would enable to make up for continuing to work? If you don't need the money to enjoy your life, and you don't need the work to fill your time with activities you value, then it's pretty easy, walk away. If you would really enjoy the money, then it's how much fun will it be versus how much you dislike work? Finally, if you would have fun doing the job and that works with your other family commitments, then its an easy choice of sure, go do the fun thing and get a big pile of money for blow that dough time.

It sounds like you are in the first case, you don't want to do the job, and you don't need the money to enjoy yourself, so probably time to go have fun.
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Old 02-08-2019, 05:45 PM   #149
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Just had an additional thought. OP is 63. According to actuarial tables has about 20 years left on average... would he want to waste 10% of his likely remaining time working?

Not this 63 yo!
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Old 02-08-2019, 05:58 PM   #150
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Just had an additional thought. OP is 63. According to actuarial tables has about 20 years left on average... would he want to waste 10% of his likely remaining time working?

Not this 63 yo!
I'm with you on this, same age. BUT some folks just thrive on the excitement of the job. If it floats his boat, have at it. But since he posted here, maybe there are second and third thoughts?
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Old 02-08-2019, 06:01 PM   #151
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Slap!! Get over it.

(stay retired).
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Old 02-08-2019, 07:32 PM   #152
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Slap!! Get over it.

(stay retired).
Love the post. Slap received
!
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Old 02-08-2019, 09:38 PM   #153
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I've read posts here for a couple years and don't know how anyone on here can be stressed or worried about when and/or whether to retire. I don't think I've read anyone who doesn't have at least a hundred thousand a year to live on in retirement. Who couldn't live on that? And talking about whether to go back to work or not, like there are just jobs waiting for them to walk into whenever you get the whim. If that's the case, you all have nothing to worry about.

I am 67, had my job eliminated during a merger last March, and have been looking for work ever since. I know it's my age because I get the interviews and pass them all the way through each level until I am told they have however many finalists they are looking for, equally qualified candidates, and will make a decision in X number of weeks. If we are equally qualified then they must find arbitrary attributes to eliminate from. I have been asked multiple times "how long I intend to be with the company?" Not a normal question or one you'd ask someone intheir 30s or 40s. Who is going to say they ever plan to leave. But they must think I intend to retire soon, or maybe die. I never wanted to retire. I enjoy working. My co-workers are like family. But I am tired of looking and being rejected. In 40 years this is the first time I've taken more than 2 weeks to find a job.

So, I am now retired. For those who aren't sure they can retire on $1M or not savings, let me share that you are stressing for no reason. I will be living on about $1800/mo in social security, before they take Medicare and taxes. I have only about $170k in retirement funds, which I will only take occasional distributions from for emergencies. My house is not paid off, so I will still need paying the mortgage. Every time I hear the market has taken a loss, I really have reason to worry. I am driving a 16 year old car. My financial advisor tells me if I were to take a monthly distribution to pay the mortgage and a new car payment, my funds should last 15-20 years. I am in good health, so that may not be enough. And any downturn would mean I have to be sure to die sooner. So, I'm not taking monthly distributions. I will just be careful how I spend and make it last as long as it can. But I'm not stressing about it and I don't think anyone else should either.

Just decide if you enjoy going to work or not. As long as you do, then keep doing it. When you don't anymore then you need to retire and find something else you do. If you have saved more than me, then you should have no problem living a good retirement.
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Old 02-08-2019, 09:55 PM   #154
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Why is it hard for you? Do you assume that anyone who who has a financial/life decision they are struggling with -- and who has accumulated significant assets and expenses --must be bragging by posing their question on this forum? That seems like a pretty uncharitable perspective. Or is it just that you find it hard not to be jealous of someone who has accumulated more money than you have? Maybe you are not alone there, but it is good to resist jealousy if you can. There will always be people who have more than you do, or less than you do.

I know lots of people who have very limited incomes and assets and who have financial and "time versus money" decisions to make. Like a young physical therapist, for example, who was offered an extra $8,000 a year income to become a supervisor, and was trying to figure out if it would be worth the added stress. I also know some wealthy people -- much wealthier than the OP -- who are struggling with decisions about whether to continue to work, balancing their desire for free time against their desire to maximize their charitable or family legacies. They all have real decisions to make that are important to them. If they ask their questions, they are doing so in good faith, seeking advice and input. Why should we assume the worst about people, or resent their success? I don't get it.

Very well put.
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Old 02-08-2019, 11:59 PM   #155
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My apologies. I really felt some people were truly stressing about wanting to be retired but thinking they would not be able to live on what they had accumulated. I wanted to assure them they could relax and know they would be okay. Since I'm making it on a whole lot less. I thought I'd be able to encourage them not to put off retirement and continue working, if they weren't enjoying it, if enough money was the only concern. Sounded to me like they had more than enough and should start doing what they really desire without delay.

I'm not jealous of anyone's money. I'm satisfied with enough to make ends meet. I was just saying if I can do fine with my meager savings, those with so much more should feel even more secure to make the move to retire and not worry about it.

It was my first post and guess I didn't understand, and encouragement was not what was wanted, so it will be my last.

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Old 02-09-2019, 12:47 AM   #156
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I've read posts here for a couple years and don't know how anyone on here can be stressed or worried about when and/or whether to retire. I don't think I've read anyone who doesn't have at least a hundred thousand a year to live on in retirement. Who couldn't live on that? And talking about whether to go back to work or not, like there are just jobs waiting for them to walk into whenever you get the whim. If that's the case, you all have nothing to worry about.

I am 67, had my job eliminated during a merger last March, and have been looking for work ever since. I know it's my age because I get the interviews and pass them all the way through each level until I am told they have however many finalists they are looking for, equally qualified candidates, and will make a decision in X number of weeks. If we are equally qualified then they must find arbitrary attributes to eliminate from. I have been asked multiple times "how long I intend to be with the company?" Not a normal question or one you'd ask someone intheir 30s or 40s. Who is going to say they ever plan to leave. But they must think I intend to retire soon, or maybe die. I never wanted to retire. I enjoy working. My co-workers are like family. But I am tired of looking and being rejected. In 40 years this is the first time I've taken more than 2 weeks to find a job.

So, I am now retired. For those who aren't sure they can retire on $1M or not savings, let me share that you are stressing for no reason. I will be living on about $1800/mo in social security, before they take Medicare and taxes. I have only about $170k in retirement funds, which I will only take occasional distributions from for emergencies. My house is not paid off, so I will still need paying the mortgage. Every time I hear the market has taken a loss, I really have reason to worry. I am driving a 16 year old car. My financial advisor tells me if I were to take a monthly distribution to pay the mortgage and a new car payment, my funds should last 15-20 years. I am in good health, so that may not be enough. And any downturn would mean I have to be sure to die sooner. So, I'm not taking monthly distributions. I will just be careful how I spend and make it last as long as it can. But I'm not stressing about it and I don't think anyone else should either.

Just decide if you enjoy going to work or not. As long as you do, then keep doing it. When you don't anymore then you need to retire and find something else you do. If you have saved more than me, then you should have no problem living a good retirement.
There are many here that are retired on far, far less than the multiple millions recommended by financial advisors. (Just start a "frugal retirement" thread and you will find out!) There are also people living in HCOL areas that really "need" $100k or more a year in income to maintain a certain standard of living. To each his own.
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Old 02-09-2019, 08:11 AM   #157
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Franklin,

1. Many people posted here advising you to cut expenses. That implies that this would be a burden. I think you can spend reasonably in the range you deem necessary and appropriate, because financial research has shown that people voluntarily reduce their spending as they age (that is, even when they can spend much more, they don’t). It’s highly likely that you will spend less voluntarily over time and you won’t even notice that reduction; it won’t seem burdensome. I recall reading an article by a financial planner who regretted not advising clients to spend more earlier, because they ended up with excess funds at the end. Here is but one reference:

You'll Spend Less As You Age | Money

2. It is possible that you are not a “quant-jock” and that, in part, may have triggered your initial post. Yet on this site, there are true, financial rock stars (to put it in terms of your world). I’m seeing that the quant-jocks here are generally agreeing you are fine financially. Staying with this site long term can be a huge benefit to you for advice as you age.

3. If a guy says he needs $300k per year, we shouldn’t question that just because it is above what we would spend. Yes, there may be ways to save, but let’s not assume that.

4. Franklin, my NW is just a bit under yours and my safe withdrawal rate is marginally less than what you plan. That number for me has been tested by no less than 4 sophisticated planning exercises from major financial firms (plus my own spreadsheet analysis). I don’t think I will spend $250-300k, and probably not even $200k, but the numbers say I likely could. I’m 60 and just retired. Your mileage may vary; it is good advice by others to go get some sophisticated planning advice.

If you don’t want to work, you most likely don’t need to.
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Old 02-09-2019, 08:41 AM   #158
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My apologies. I really felt some people were truly stressing about wanting to be retired but thinking they would not be able to live on what they had accumulated. I wanted to assure them they could relax and know they would be okay. Since I'm making it on a whole lot less. I thought I'd be able to encourage them not to put off retirement and continue working, if they weren't enjoying it, if enough money was the only concern. Sounded to me like they had more than enough and should start doing what they really desire without delay.

I'm not jealous of anyone's money. I'm satisfied with enough to make ends meet. I was just saying if I can do fine with my meager savings, those with so much more should feel even more secure to make the move to retire and not worry about it.

It was my first post and guess I didn't understand, and encouragement was not what was wanted, so it will be my last.

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I don't think there was anything wrong with your post. Please don't go.
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Old 02-09-2019, 09:08 AM   #159
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My apologies. I really felt some people were truly stressing about wanting to be retired but thinking they would not be able to live on what they had accumulated. I wanted to assure them they could relax and know they would be okay. Since I'm making it on a whole lot less. I thought I'd be able to encourage them not to put off retirement and continue working, if they weren't enjoying it, if enough money was the only concern. Sounded to me like they had more than enough and should start doing what they really desire without delay.

I'm not jealous of anyone's money. I'm satisfied with enough to make ends meet. I was just saying if I can do fine with my meager savings, those with so much more should feel even more secure to make the move to retire and not worry about it.

It was my first post and guess I didn't understand, and encouragement was not what was wanted, so it will be my last.

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Elizabeth, we have family members who have retired with little more than SS and my son may be in the same position. I always am heartened to read of those who live well on less. We all can benefit from their and your wisdom.
I do not think that what you took as a criticism was aimed at you. We are much nicer than that.
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Old 02-09-2019, 10:47 AM   #160
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+1 Most of us love to hear from people who are retired on modest money. For one thing, it gives the younger members hope that they will be able to retire one day. It also helps to reassure those who worry about having their assets reduced, due to recessions or a multitude of other disasters. Most of us will cheer you on as you find ways to live frugally and well.

I didn't think you sounded jealous of OP's money.

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Elizabeth, we have family members who have retired with little more than SS and my son may be in the same position. I always am heartened to read of those who live well on less. We all can benefit from their and your wisdom.
I do not think that what you took as a criticism was aimed at you. We are much nicer than that.
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