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Old 02-11-2021, 05:07 PM   #21
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Watch your portfolio closely and when it pops up above your number, retire quick, because if you wait a few days, you might not be able to afford to.
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Old 02-11-2021, 06:40 PM   #22
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30x anticipated annual expenses on top of SS and mini pension. The rest is 90+% equities in Roth accounts. Let it ride. Your results WILL vary.
I would agree with 30x which seems a reasonably safe number. But the problem is that NW is unstable fluctuating with the market. So I'd define the goal as annual passive income greater or equal than annual expense. If part of the income comes from retirement accounts then there need to be an equivalent amount of cash to substitute this part till the age of 59.5.
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Old 02-11-2021, 06:44 PM   #23
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When I saw that my pension benefit was more or less equal to what I was already living on.
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Old 02-11-2021, 07:02 PM   #24
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A 50% fluctuation doesn't bother you? I'm having a hard time understanding that. Is it that your yearly expenses fluctuate wildly each year over the past 10 years?
Not sure I understand your question.

What I’m saying is that may “number” is way higher than my actual expected need. Said another way, if I had $1M and FireCalc said I was right at 100 percent, I’d still add a lot to the million before I would consider it my “number” to retire on. Therefore, if I was getting close to my number, or like your example, I was just under or just over my “number”, it would bother me too much because I would have already inflated that number enough that those daily/monthly fluctuations wouldn’t bother me.

If that’s not clear, let me know and I’ll try a different way to explain it.


Note your other comment about yearly fluctuations - yes, yearly expenses can and do fluctuate. Some years significantly. For example, you might plan on buying a car every ten years. So, you add $3000 a year to your budget. So your budget will be favorable for 9 years and then bam, you’ll spend $30K on a car in year 10. Planned, yes, but still a very large fluctuation. That really shouldn’t effect your planning or your “number”, but it will impact your cash flow planning.
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Old 02-12-2021, 07:33 AM   #25
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It was after,3 years retired. I had built the stash quickly through momentum trading. So I retired from 3BoDs and helped DW wind down her business.

In 2008, we had just bought a second home. So the downturn had me watching closely and we were OK when we confirmed that we had reduced our annual spending by 30% by living 6 months in Mexico. So our plan now extended forever with a substantial buffer.

Now 12 years later, the biggest challenge is how to,blow the dough.
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Old 02-12-2021, 10:01 AM   #26
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Was very comfortable last Spring when I calc’d my monthly pension after taxes would exceed what I was taking home as an employee.

With zero long-term debt, medical covered, all three kids through university and now independent, and a few dollars in other investments, wife figured I was good to go into retirement.
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Old 02-12-2021, 11:02 AM   #27
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OMY, and I am serious.
For those of us over 30, what does OMY stand for?

"Oh My?"

"On My Year?"

"On My Yacht?"
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Old 02-12-2021, 11:18 AM   #28
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For those of us over 30, what does OMY stand for?

"Oh My?"

"On My Year?"

"On My Yacht?"

* Acronyms and Slang Frequently Used on the Forum *
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Old 02-12-2021, 11:21 AM   #29
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For what it’s worth (FWIW), I think we use too many TLAs (three letter acronyms) on this forum. Is it really that hard to type the words out?
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Old 02-12-2021, 11:23 AM   #30
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TANSTAAFL, but YMMV
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Old 02-12-2021, 11:23 AM   #31
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We did not have a number. When we decided it was time, we reviewed the numbers, the pensions, out plans, and then pulled the plug. It was that easy.

We had been keeping track of what we believed we needed to retire in terms of cash flow and investments. No big number at the bottom though.
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Old 02-12-2021, 01:37 PM   #32
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I felt I had reached my number when I had 25x my annual living expenses at the age of 53. I worked for 2 more years after that full-time. I was having health issues and tried to push myself as long as I could because I knew I could not continue for too much longer. I knew once I stopped, I had no intention of having to go back to work. At the age of 54, I cut my hours back to 32 from 40. At 55, I cut back to part-time, 20 hours. By that time, I think I had about 30x annual expenses. I fully retired after 2 years of part -time at age of 56 in 2020 because of my health. By that time, I had 42x annual expenses. I currently have 55x+ my annual expenses. Luckily, everything worked out for me just in time. Even if there is another huge bear market, my draw down is so low, that I'll "bearly", lol--barely be affected. The hardest adjustment to retiring for me was the mental aspect of letting go of a paycheck.
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Old 02-13-2021, 05:10 PM   #33
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The math is straightforward, when you've hit your number, even if it is at an all time market high, that's what your safe withdrawal rate is supposed to handle. But I think most people end up feeling worried about exactly that. I'd certainly feel better if I hit my number in the middle of a market crash.
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Old 02-13-2021, 07:12 PM   #34
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With pensions, SS, investments, and savings considered, our decision was driven by DW purchase (15 years ago) of her favorite planning books for her teaching job. Since they do not make these books anymore, she stated when the last one is used, we retire.

And so, we did. There was no magic number we were aiming for.
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Old 02-13-2021, 07:14 PM   #35
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With pensions, SS, investments, and savings considered, our decision was driven by DW purchase (15 years ago) of her favorite planning books for her teaching job. Since they do not make these books anymore, she stated when the last one is used, we retire.

And so, we did. There was no magic number we were aiming for.
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Old 02-13-2021, 07:14 PM   #36
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With pensions, SS, investments, and savings considered, our decision was driven by DW purchase (15 years ago) of her favorite planning books for her teaching job. Since they do not make these books anymore, she stated when the last one is used, we retire.

And so, we did. There was no magic number we were aiming for.
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Old 02-13-2021, 07:26 PM   #37
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Sorry for the double post, I'm elderly.
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Old 02-13-2021, 07:28 PM   #38
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And, there may have been some whiskey involved!
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Old 02-13-2021, 07:39 PM   #39
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I hadnt planned far ahead to retire at 51. For 4 months I was fed up with my job(the poeple,not the work) so I did a bit of research and knew I could safely retire, so I went ahead and retired(I'm happier everyday). I just ran the numbers right now, I had 38x my yearly spending at that time, which was April 2017. I've actually spent less in retirement than before although I have always lived very frugally. That makes me the happiest(being frugal). I'm 99% in stocks. My yearly spending has been 2.3% of my net worth at retirement. My net worth is up 66% since I retired 46 months ago. So my yearly spending is 1.275% of my current net worth. If the stock market goes down 67% and stays there, my yearly spending would be 3.825% of that new amount(but still under 2.3% of my net worth at retirement).

I dont have a pension. I plan on taking SS at age 70.

I'm not nearly as rich as most people on here.
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Old 02-14-2021, 06:00 AM   #40
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Our number was what we had on the day we retired.

It was actually a confluence of several factors that determined our retirement date. First, I had to wait until I was eligible for retiree health care for the two of us. Then, the young wife waited to hit 30 years of teaching, which substantially mitigated the early retirement penalty for her.

Financially, I had a number in mind for both income and portfolio value. Specifically, I wanted to have our two pensions cover our ordinary living expenses, which together with SS starting at 62, would also cover our expected travel expenses. Additionally, I wanted to have sufficient portfolio to cover the same thing at a 4% withdrawal rate (i.e. -- portfolio 25X the sum of pension plus SS), just in case something went awry with those sources of income. We hit both numbers almost right on the money as of the date of our retirement, although we would have gone anyway, even if the portfolio was a little light.

So we were independently SIRE and FIRE at the same time, with no change in our standard of living required. We did supplement our travel budget from our portfolio for the first year of retirement (7/19 through 6/20), but we haven't traveled due to COVID since last January. And since I start SS next month we won't have to do that going forward. Unless we want super luxury travel, we won't have to draw on our portfolio at all.
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