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Old 12-02-2009, 10:05 AM   #21
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Join Date: Apr 2009
Location: Eastern PA
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Originally Posted by W2R View Post
My sympathies - - that is really complicated!! It would drive me nuts.

I have ONE of the same problems, with SS not kicking in until 6 months into retirement. Even worse, I really want to wait until 66 to claim SS so that would be 54 months. My approach to that will be to set aside (mentally) the amount of money corresponding to those 54 SS payments, and regard it as "spent". Then I would take the 3% or 3.5% of the remainder.
Actually, it's not that bad at all to plan. While I use all the current forecast tools (i.e. FireCalc, F.E., RIP, etc.) for planning and all give similar results over the long term, I perfer using RIP (Fidelity's Retirement Income Planner) which gives a year by year breakdown of income, taxes, RMD's, etc, along with my detailed line item budget as input, and various increases/decreases along the way. For example, we do travel quite extensively (before and after retirement), but I did put in anticipated reduction of costs along the way (adjusted each decade) as we age. OTOH, the RIP tool is set to adjust costs related to health care (e.g. preimums, co-pay's, etc.) at a 7% rate, beyond the normal reported inflation rate.

It's a bit easier than just using a spreadsheet (even though I also use those ) along with one of the other tools.

Like I said, we don't have all our income available on day one of retirement (as for my DW, nobody knows when that will be ). However, we do know the current $$ of pending income sources (5 additional one's) over the next eight years, so we can do a pertty good "gestimate" of where we will be, along our journey.

Hey, I did the expense/income excercise way before I retired, so it's no big thing. If anything, the last 2.5+ years of retirement has proven that my "method" is sound, and I feel comfortable with my forecast for our future...
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Old 12-02-2009, 10:40 AM   #22
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Probably up more than 3%. Education expenses and vacation expenses will probably be higher this year. Otherwise fairly flat expenses elsewhere (long term fixed rate debt payments comprise half our "spending").
Retired in 2013 at age 33. Keeping busy reading, blogging, relaxing, gaming, and enjoying the outdoors with my wife and 3 kids (8, 13, and 15).
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Old 12-02-2009, 04:28 PM   #23
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Originally Posted by cardude View Post
Oh yeah, I also started doing a little car wholesaling on the side with an old car buddy of mine, and that's bringing in around 2K per month so far. I'm not counting that in my SWR however since I'm not sure how long it will last. It's just funny money for now. I don't really consider it work since I am really just the money man behind the scenes and don't do much. I do go to the auction a few times per month and help him shuffle cars around some. It's fun. More fun than house cleaning (which I still try to do but am not very good at).

I sort of knew you would find something to do. Many people do after they retire and have time to clear their head from the 9-5 world. A buddy of mine retired from a high pay/stress sales job and bought a small (4 bay) self serve car wash and hangs out there for a couple hours a day shooting the breeze and cleaning out the money machines. He doesn't consider it work after his previous job.
“I guess I should warn you, if I turn out to be particularly clear, you've probably misunderstood what I've said” Alan Greenspan
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Old 12-02-2009, 07:49 PM   #24
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I plan on leaving our budget the same for 2010. This year, we will come in under our budget.

We plan to work a bit in 2010, so hopefully, withdrawals from my portfolio will fall much below 4%.
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Old 12-02-2009, 08:11 PM   #25
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About 25% of our expenses are housing related. As the mortgage payment does not go up, and our property taxes are frozen, we will have little or no inflation for that expense. Medical is now covered by medicare so no inflation there. While I expect some inflation in other categories, like Wahoo, we will adjust. On the other side, we plan on starting SS toward the end of 2010 so income will go up.
If it is after 5:00 when I post I reserve the right to disavow anything I posted.
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