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View Poll Results: What is your actual spending pattern vs your FIRE stash?
Bounce the check to the undertaker 8 3.28%
"SWR" - spend down to zero on a historical average basis 28 11.48%
Capital preservation - die with the dollars you started with 27 11.07%
Spending power preservation - die with the spending power you started with 33 13.52%
Scottish style - grow the portfolio on average 95 38.93%
Uncle Scrooge - grow the portfolio with intensity 14 5.74%
I like bacon 39 15.98%
Voters: 244. You may not vote on this poll

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Old 05-12-2021, 07:17 AM   #21
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We are fine with drawing down the portfolio over the long term, even down to half (inflation adjusted) of what we started with if necessary, but not all the way to zero as there may be some large lump sum needs near end of life.

I didn’t see where we would fit other than liking bacon.

Interesting - Jim59 from Glasgow is planning about the same.
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Avoided picking Scottish Style, not sure why it’s called that. My intention would to maintain at least 50% of the value of the portfolio I started retirement with.
I see now that several people are comfortable drawing down to some lower % of the original, but not anywhere near all the way down to zero.
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Old 05-12-2021, 07:35 AM   #22
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We are probably Scottish style, but not by choice or plan. With my pension we do not have a problem drawing down our portfolio, but our spending has been about 35-40% of what we expected so far (even counting the pandemic impact). Combined with the markets over the last 3 years our portfolio continues to grow.
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Old 05-12-2021, 08:10 AM   #23
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It's hard to say, because on the one hand, I see the virtue in spending your money down -- enjoying it while you're alive -- while having some portion at the end, to leave for family and charity. That would be somewhere between SWR and PWR.

But in practice, I spend what I feel like spending, and that turns out to be much lower than both of those. I have tried to get myself to spend more, but I seem constitutionally incapable of it. There is just not all that much I want, and I don't see any value in trying to stoke materialistic desires in myself, just to get my spending up in the hope that I'll enjoy my life more, because I have more/better stuff. I'm just not wired that way.


tldr: I like bacon.
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Old 05-12-2021, 08:24 AM   #24
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I voted bacon.

Once I'm on Medicare, I go into BTD mode (well, it'll still be <= 4% SWR then, but BTD for me).
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Old 05-12-2021, 08:39 AM   #25
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They say you learn something new everyday. Today I learned I'm Scottish!😀
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Old 05-12-2021, 08:39 AM   #26
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As the OP question said, right now I am in Scottish style, but mainly as result of the great market returns over past several years. My goal over long run is capital preservation.
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Old 05-12-2021, 09:00 AM   #27
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We haven't been retired long enough to establish a true pattern, especially with COVID interfering. Since buying long-term care insurance doesn't really look practical, I think we will have to preserve capital.

Since less than 30% of our planned spending will come from retirement savings once we draw Social Security, this will have only a modest impact on our standard of living.
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Old 05-12-2021, 09:38 AM   #28
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I told the kids that if there was anything left that it was estimating error on my part... but that's not really true... our retirement is probably significantly overfunded so unless the SHTF there will probably be a significant inheritance left for them... and that doesn't count any of the three inheritances that I'll likely receive... one of which is very significant.

I guess that I'm probably closer to Scottish style... we spend pretty much what we want to without trying to be wasteful and looking for a good value. After we start SS (DW this month and me in 5 years) our WR will be lower than the growth rate.

For example, we have a very nice 2001 Bennington pontoon boat that is in great shape and runs like a top that we bought for cash in 2014. Sometimes I pine for a new pontoon... the new ones have vinyl flooring rather than outdoor carpeting and sometimes I wish I had more than 40hp available... but a new pontoon close to what we have now but with a little more hp would be ~$35k. We can easily afford to spend $35k (actually $35k less our trade) for a new pontoon... but the one we have is quite nice, runs like a top and meets our needs nicely so it is hard to get excited to replace it even though it is 20 years old. Now if the upholstery were dodgy or the reliable Honda outboard would leave us stranded and needing a tow every so often then I could justify a raplacement.

Similar thing with our 2016 Outback with ~80k miles on it.... it is in great shape... in fact last fall we picked up some friends from the airport and the guy asked when we got our new car... runs like a top and no problems... just routine maintenance... considering trading because it is 6 years old but on the other hand... why (other than just becuse we can).

Yes, I know... first world problems.
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Old 05-12-2021, 09:49 AM   #29
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Would have chosen Variable Percentage Withdrawal (VPW) if it had been in the poll. Although I don't intend to completely follow it. If I start closing in on my planned departure date, I'll reset and bump the departure date out to something I'm more comfortable with at the time.
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Old 05-12-2021, 10:03 AM   #30
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I picked bacon. I spend more time in a year making our bacon than I do managing the portfolio.

18 years retired in an amazing bull market, we have long since passed the point where we have more money than we will ever need and have an adequate estate for the grands, our son, and our charities.

But successful investing is so easy, why not do it? Index. Buy & Hold. Done. We look at the portfolio once a year and some years we even make a trade. Much less time consuming than curing, smoking, and slicing bacon -- especially considering the time cleaning and sanitizing the slicer.
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Old 05-12-2021, 10:41 AM   #31
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As noted in another thread a few weeks ago, despite DW's best efforts (heh!) we will likely end up with 4 or 5 X what we started with 15 years ago.

With 20-25 years left ahead of us max, a 5-6% WDR, a 70/30 mix and a few more bulk increases (inheritances) on its way, it's likely that we won't be able to 'keep up with the gains'.

We are, mindful however that while 6% might have an increase in NW, a 7% WDR could bankrupt us before life's-end. So it's a bit of a thread the needle act.
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Old 05-12-2021, 11:17 AM   #32
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Fired since 2001, plan on dying broke, but won't since DW and I can't spend everything FireCalc says we can/should. Maybe hyper inflation will solve my underspending issue.
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Old 05-12-2021, 11:39 AM   #33
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Retired 7 years ago and I've been keeping my average W/D rate below 3.5%. Average annual increase in the investments since retirement after withdrawals is over 4%. I want to keep it that way; Dad is in LTC now at over $100K/year and if I end up needing that level of care I don't want Medicaid deciding where I'll get it. I also don't want DS and DDIL to feel like they have to chip in.
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Old 05-12-2021, 12:06 PM   #34
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I've been retired for about 14 years and seem to have trouble spending even the WR I allocate each year. For the past couple of years, I have pushed myself to take care of a few larger projects around the house (new HVAC, re-paved driveway, etc.) that needed doing. I still come in under budget, but at least I am doing a little better with the spending.
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Old 05-12-2021, 01:25 PM   #35
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Quote:
Originally Posted by audreyh1 View Post
We are fine with drawing down the portfolio over the long term, even down to half (inflation adjusted) of what we started with if necessary, but not all the way to zero as there may be some large lump sum needs near end of life.

I didnít see where we would fit other than liking bacon.

Interesting - Jim59 from Glasgow is planning about the same.


I see now that several people are comfortable drawing down to some lower % of the original, but not anywhere near all the way down to zero.
Yes, I should have added I will have a defined benefit as my main pension, so the intent of the response to the poll was for my other portfolio.
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Old 05-12-2021, 01:28 PM   #36
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Quote:
Originally Posted by marko View Post
As noted in another thread a few weeks ago, despite DW's best efforts (heh!) we will likely end up with 4 or 5 X what we started with 15 years ago.

With 20-25 years left ahead of us max, a 5-6% WDR, a 70/30 mix and a few more bulk increases (inheritances) on its way, it's likely that we won't be able to 'keep up with the gains'.

We are, mindful however that while 6% might have an increase in NW, a 7% WDR could bankrupt us before life's-end. So it's a bit of a thread the needle act.
Quoting myself here. At 3:30 the Dow is down 650, so......forget about what I said above, ok?
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Old 05-12-2021, 02:04 PM   #37
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Our investment portfolio has doubled since we retired.

Our goals will be to pay for our grandchildren's post secondary education and to provide a retirement fund for each of our two children.

We are certainly not scrimping or afraid to spend money. Lots of extended international travel each year.

We consider ourselves to be very fortunate. Especially because we have the good health to enjoy our retirement.
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Old 05-12-2021, 03:04 PM   #38
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I voted Scottish. Not because I'm cheap or frugal, but like many here, I retired with more than I needed and just don't have a long BTD list. I live mostly on pension/non-portfolio income, so the portfolio has naturally increased (so far ).
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Old 05-13-2021, 03:11 AM   #39
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Bacon 'cause there's no "over-saved." YMMV
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Old 05-13-2021, 03:59 AM   #40
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I voted capital preservation, because That's what's happened so far. I'd love to hit SWR, but doubt my nerve to do so.
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