Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Old 04-24-2015, 03:27 PM   #41
Recycles dryer sheets
Join Date: Feb 2013
Posts: 225
Since I (could) live another 65 or more years, I would splurge on very little and withdraw a conservative 2.5-3% every year. I would find meaningful activities for my day-to-day schedule, and I would not focus on earning money. Even if I only withdrew 2.5% a year ($100K), I could live extremely comfortably. If I were able to supplement it with say $20-30k of income from work I enjoy or am passionate about, I could even live more comfortably and not touch my nest egg.

At the end of the day, I would be able to focus on every other goal in life besides accumulating money and paying for my day-to-day life, which largely takes up most of my time in life right now.
younginvestor2013 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 04-24-2015, 04:17 PM   #42
Full time employment: Posting here.
Join Date: Jun 2012
Location: Ohio Suburb and WV Farm
Posts: 519

My estate is already set up so that at least 40% goes to charity, the rest to DS and his family.

With the windfall you describe, I might raise that to 50-60% charity. Figure that's my chance to fund some improvements on the world, with the satisfaction of knowing I get to pick some charities who have proven just how much "bang they can get for their buck."

A great feeling---- knowing that some of my choices can benefit others, without me even having to show up to ensure that it happens!

"Everything becomes more itself." --C.S. Lewis
LitGal is offline   Reply With Quote
Old 04-25-2015, 04:13 PM   #43
Recycles dryer sheets
Join Date: Jul 2014
Posts: 153
Originally Posted by RetireAge50 View Post
If you had $4,000,000 and 40 years to live would you:
1. Plan to spend about the same per year
2. Spend a $1,000,000 on your wildest dreams and then go with 75% of option 1.
3. Spend variably based on your energy/desires at the time (knowing the decision changes future spending).
4. Stick with a safe spending level. Maybe spend more later or give it away.
5. Another plan. This is the dumbest question ever posed.
I have always planned for option 1 but am now thinking 2 or 3 makes more sense.

Great hypothetical. Except it isn't. That's me, very shortly, at about $6.5mm and early 50's. So how to answer on a whimsical Saturday afternoon before going out tonight with DW and friends?

I have to say I am planning carefully for #4 of around 4% and not touching the capital, which should continue to grow nicely over time and not concern me with respect to yearly market ups and downs. About $2mm of it is already invested in the homes we want and there is really nothing else we want that we don't have.

Good problems to have I'm sure you'd agree.

But, as I've told interested people in recent years, in general terms, you still need to have a plan and discipline to ensure you keep what you earned for your lifetime, and meet your intent to pass it on, gift it, or whatever. The amount doesn't really matter past a point, you can easily still blow it on "red" if you aren't careful. I've seen it. It isn't pretty.
timemoveson is offline   Reply With Quote
Old 04-25-2015, 04:55 PM   #44
Thinks s/he gets paid by the post
MooreBonds's Avatar
Join Date: Aug 2004
Location: St. Louis
Posts: 2,179
This is a very interesting question (to me, at least).

In all honesty, before I read this thread, I would assume that I would stick to #1 or #4 - a WR of about 2.75%-3% on the full portfolio (assuming retiring at 45 +/-). My projected portfolio would hopefully be a little north of $3, assuming nothing about the unknown future Mrs.

But reading the other responses and the OP's question, it's funny how my view is starting to lean more towards a modified #2, with a bigass splurge (or much higher annual spend) over the first few years of retirement, then a 'safe' 2.75%-3% on the smaller portfolio amount, as it would give me a huge amount of amazing experiences, and still allow me to plan tons of more fun activities on a budget that would fit in my smaller annual spend level. (and since I know how to shop around for good bargains, my bigass splurge would contain a long list of amazing activities.)
Dryer sheets Schmyer sheets
MooreBonds is offline   Reply With Quote
Old 04-25-2015, 07:01 PM   #45
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 30,476
A variant of #2 could be to set 1/4 aside for splurges to be spent down over the first 10 years.

I guess that is really the same.

Just be careful about blowing a large chunk of it on something that adds a lot to annual expenses for upkeep and maintenance. Some things that cost a lot up front are also expensive to own.
Retired since summer 1999.
audreyh1 is offline   Reply With Quote
Old 04-25-2015, 07:46 PM   #46
Thinks s/he gets paid by the post
NYEXPAT's Avatar
Join Date: Jul 2009
Location: Miraflores,Peru
Posts: 1,988
If I had 4 million and ONLY 40 years left to live?
1. Dump the wife (check)
2. Now I got 2 million (Check)
3. Move to SA (check)
4. Marry a beautiful young girl (check)
5. Invest in RE (check)
6. Got my 4 million again (check)
7. Have a few Son's and enjoy life (check)
8. Apparently the doctors were wrong as i feel great.
9. Crack open another bottle of Jack Daniels and thank the "Whiskey Gods"!
NYEXPAT is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
You only live twice, from Japan with love Radiophilejapan Hi, I am... 8 05-24-2009 07:54 PM
Can you have two health insurance plans at once? mikex Health and Early Retirement 12 06-21-2007 04:05 PM
Live long enough to live forever (book) JJac Health and Early Retirement 10 11-25-2006 08:41 PM
Once You Developed Your Plan...Did You Tommy_Dolitte Young Dreamers 7 09-14-2004 04:00 PM

» Quick Links

All times are GMT -6. The time now is 02:48 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.