Who is following Firecalc WR?

[tmm99]

I have seen many posts in which people are saying they spend only 3% of their total portfolio. I realize that people are being very conservative in their spending, but are there folks here who are spending close to what FireCalc says you can?


Just curious.

 

[ERD50]

I think you need to put some specifics in there. You'll get people answering for 30 years, or 25, 35 or 40, and 95% success, or 90% or 100%. FireCalc will provide different % for different combos.

-ERD50

 

[tmm99]

Sure, I meant with the default 95% success rate or even 100% success rate regardless of how many years you will be spending in retirement. I just want to see if anybody is using the given numbers from Firecalc as the basis for expenditures.

 

[W2R]

For someone who is less than ultra-conservative in their spending, I think the amount suggested by FIRECalc would probably be perfectly fine. That is not me; I spend less than half.

 

[Alan]

....I guess I am a belt-and-suspenders kind of gal.

You sound like my kind of gal

Where was I?

Oh yes, the OP.... Nope, forgot what I was going to say, can't get suspenders out of my mind

 

[Koolau]

You sound like my kind of gal

Where was I?

Oh yes, the OP.... Nope, forgot what I was going to say, can't get suspenders out of my mind

Heh, heh, must be a "British" thing (or so I've heard).

 

[W2R]

You sound like my kind of gal

Where was I?

Oh yes, the OP.... Nope, forgot what I was going to say, can't get suspenders out of my mind

LOL!! I didn't know you picked up on the suspenders (or had even posted) and I deleted most of my post, including the suspenders, because I thought what I had said was boring and off topic. Oh well! But you know I *AM* a belt and suspenders kind of gal.

 

[Bestwifeever]

You sound like my kind of gal Where was I? Oh yes, the OP.... Nope, forgot what I was going to say, can't get suspenders out of my mind

Sure, they hold up the knickers, right?

 

[Koolau]

But seriously, if that's now possible, I've said it before (and if I should live so long) I'll say it again. I ONLY used FIRECALC for planning. IOW, I determined that I COULD retire, based on what FIRECALC told me. Once I retired, I played it more by ear. (Down market, etc. - spend less. Up market, spend more) Haven't really played much with FIRECALC since then, to be honest. But, to digress, I am ALSO a belt and suspenders kind of guy (back ups to my back ups). Sorry Alan if that ruins it for ya. YMMV

 

[W2R]

More like this, maybe? I don't see a belt, though.

 

[audreyh1]

I have seen many posts in which people are saying they spend only 3% of their total portfolio. I realize that people are being very conservative in their spending, but are there folks here who are spending close to what FireCalc says you can?


Just curious.

That's because many people here are retiring way earlier than 65 and potentially looking at a 40 to 50 year retirement period rather than the 30 year period used in most studies.

 

[steelyman]

Sure, they hold up the knickers, right?

They keep things upright.

 

[Alan]

Sure, they hold up the knickers, right?



View attachment 17576

well.... not quite what was in my mind...

 

[Alan]

More like this, maybe? I don't see a belt, though.

getting closer

 

[Alan]

They keep things upright.

 

[ERD50]

That's because many people here are retiring way earlier than 65 and potentially looking at a 40 to 50 year retirement period rather than the 30 year period used in most studies.

That, plus the default in FC is 95% success. So maybe this is being 'conservative', but I can't see building a plan with a known 5% failure rate, when there are added unknowns.

100% success and a 45 year period gets you to ~ 3.23% HSWR (Historically Safe Withdraw Rate).

-ERD50

 

[youbet]

I'm pretty close to following one of the FireCalc scenarios I've created over the years. It's a very conservative scenario by most standards. By "conservative" I mean:

1. The end value is not zero. I took the FireCalc option of having a desired minimum ending value set at the amount I'd like to see the kids get when the second of us passes.

2. "Other sources of income" are stated in discounted numbers. We're confident that my SS and DW's Illinois public pension will not survive the idiocy of our politicians.

3. Our estimated spending number includes some discretionary spending.

4. Our initial portfolio doesn't reflect the nice gains we've had this year.

5. Our desired success rate is 100%.

6. Certain commitments, such as a trust for our special needs grandson, have already been taken care of and are not part of the FireCalc equation.

So, yes, with those stipulations in mind, we're pretty close to spending what FireCalc says we can and still have a 100% survival rate. FireCalc is pretty flexible.

 

[Zathras]

I use Firecalc as a tool, but not a script.

 

[martyp]

I used Firecalc to decide whether I could ER at 55 yrs old. The rest of my financial life is embedded in my spreadsheet. I can insert any interest rate growth and withdraw scenario I want.

 

[NW-Bound]

My portfolio is not the same as what I can try on FIRECalc. My expenses are also not fixed and vary from year to year.

From FIRECalc, I saw that 3.5% WR was a reasonable guide. SS is our reserve safety factor, whenever we claim it. That should do. If not, I can cut some expenses.

In the last 12 months, I spent 3.2%. I could cut out the 0.5% for gifts and charities, and get down to 2.7%. When we claim SS, that should easily knock down another 1% or more in WR.

 

[pb4uski]

I spend less than what FireCalc suggests we could spend.

I suspect that this is the kind of belt Alan as on his mind.

Temptation Garter Belt - Very Sexy - Victoria's Secret

W2R, she's quite the sassy gal!

 

[Alan]

I spend less than what FireCalc suggests we could spend.

I suspect that this is the kind of belt Alan as on his mind.

Temptation Garter Belt - Very Sexy - Victoria's Secret

W2R, she's quite the sassy gal!

Ding ding ding, we have a winner

That's the type of belt and suspenders I was thinking of

(In England, what you wear to keep your trousers up are called braces)

 

[NW-Bound]

Somebody said "temptation"?

Temptation, temptation, temptation
I can't resist

I know that she is made of smoke
but I've lost my way
she knows that I am broke
but I must play
temptation, temptation, temptation

Dutch pink and Italian blue
she is waiting there for you
my will has disappeared
now my confusions oh so clear
temptation, temptation, temptation
I can't resist
​

Tom Waits - Temptation - YouTube

 

[Dd852]

Old habits die hard. I never ever spent all my salary, now that I "pay" myself I never spend all that either.

 

[donheff]

Old habits die hard. I never ever spent all my salary, now that I "pay" myself I never spend all that either.

+1. So far I have "saved" about 15% of my annual withdrawal in a rainy day account. It will be interesting to see if I dare tap that pseudo account on a rainy day.