Older retirees your withdraw rate over the span?

[Terryjm51]

Ok I am so worried about the redraw rate in retirement, so my question for folks that have been doing this for over 5 to 10 years. Have you all run into problems over the years ?


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[REWahoo]

I've not run into any problems so far. My withdrawal history is detailed here: http://www.early-retirement.org/forums/f28/firecalc-vs-rew-64705-5.html#post1664252

 

[MichaelB]

Ok I am so worried about the redraw rate in retirement, so my question for folks that have been doing this for over 5 to 10 years. Have you all run into problems over the years ?

So far so good ..

 

[Terryjm51]

I've not run into any problems so far. My withdrawal history is detailed here: http://www.early-retirement.org/forums/f28/firecalc-vs-rew-64705-5.html#post1664252

REWahoo Thank you ..... Perfect I have run some numbers exactly like that...
Of course omy or 2 more years steadies the ship but we are both ready for me to pull the trigger ..... I will be 55 end of year. Firecal in the 90 % range not changing life style. We drop life style fire cal is over 100% with 35+ year with more assets


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[Terryjm51]

I appreciate the post from everyone.
One of my colleges retired in 2010 at 60 and managed his own accounts he left with 1.3, he is back has been back for about 4 years to work full time as a contractor at the age of 66
Of course I pulled him aside and asked "what happened" ?? He never changed his spending habits I am not even sure he had heard of the 4% rule. He still lived like he was making 100k a year.


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[mickeyd]

He still lived like he was making 100k a year.

Looks like this would fit on a tombstone.

 

[MuirWannabe]

We drop life style fire cal is over 100% with 35+ year with more assets


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Impressive achievement exceeding 100% certainty. As the great Yogi Berra once said. 60% of baseball is the physical part but the other 80% is all mental.


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[youbet]

Firecal in the 90 % range not changing life style. We drop life style fire cal is over 100% with 35+ year with more assets

I'm assuming by "drop life style" you mean spend less.

Yes, spending less will always cause FireCalc to show results that are more "successful." That passes the common sense test. You spend less and your money lasts longer, all else being equal. The decision to spend less so you can retire earlier is key to the decision process.

Sounds like you need to work on your budget including plans for covering the unplannned. And think about what it would take to be flexible (reduce spending) and still be happy in retirement.

If you don't get answers you're comfortable with, maybe you should work a little longer.

 

[Terryjm51]

Thank you ....youbet yes I agree
Work a 2 more years really I shouldn't have to work again. However my son has a business work 3 or 4 days a week with him for next 4 to 5 years start withdraws at 60 should be golden

I was just interested in what others have done (withdraw rate) during 08 and in good times. Appears they have taken more than 4% in several years and they are ok


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[W2R]

Ok I am so worried about the redraw rate in retirement, so my question for folks that have been doing this for over 5 to 10 years. Have you all run into problems over the years ?

I'm in year 7, and no problems so far. I haven't been spending as much as I probably could, though. FIRECalc says I could spend more.

This year I bought my "dream house" in cash, so that was a bit of a hit. That, and my prior withdrawal percentages, are detailed in this post:

http://www.early-retirement.org/forums/f28/firecalc-vs-rew-64705-6.html#post1687838

 

[Alan]

Ok I am so worried about the redraw rate in retirement, so my question for folks that have been doing this for over 5 to 10 years. Have you all run into problems over the years ?


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Just entering year 7 of retirement and all going well so far. (DW and I retired at age 55).

 

[Brat]

We are withdrawing only minimum required distributions, basically moving $ to taxable account and not spending most of that.

 

[Terryjm51]

Plans are to have house paid off in fall of 2016
I not sure yet if I will leave jan 2017 or more like July build little more cash for buffer. This forum has been very very helpful.... Call vanguard Friday we are exchanging emails and he told me we will spend a few hours together late summer this year.


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[theOAP]

This topic interested me as I'm within days of being retired for 10 years. I've not had time to do some investigations until now, so late to the thread.

The calculations show the following:

Income -
Income in 2015 (retired) was only 61.5% of what income was in 2005 (working). European pensions pay back well.

Expenses -
Total cash out in 2015 is 60.5% of what cash out was in 2005.

Tax -
If we take tax out of the equation, cash out in 2015 is 85% of what was cash out (minus tax) in 2005. I live in Europe, and tax is high for higher incomes.

Lifestyle -
What I'm really attempting to find the answer to is have our spending habits changed? It doesn't feel like it. We paid off the mortgage on retirement, so if we take tax and mortgage expenses out of the equation, then what? Cash out in 2015 was 122% higher than cash out in 2005. With inflation, that doesn't come as a surprise.

Investments -
My only investments are, and always have been, cash in savings accounts (don't ask). The base rate in November 2007, in my country, was at 5.75%. By February of 2008, it had dropped to 0.5% and has stayed there ever since.

The 2005 projection for 2015 -
Straight up - the projection I made in 2005 for where I should be at the end of 2015 has proven to be wrong, by a more than a bit. In 2015 I had 15% more in savings than what was projected in 2005. Why? I'm still living below my means and saving roughly 20% each year, and my 2005 estimates were very conservative.

Don't be afraid, but plan, and adhere to the plan, well.


Edit: To be clear, total "cash in savings accounts" in 2015 have increased by 75% over what they were in 2005.

 

[GravitySucks]

I've not run into any problems so far. My withdrawal history is detailed here: http://www.early-retirement.org/forums/f28/firecalc-vs-rew-64705-5.html#post1664252

Thanks REWahoo. This is the most comforting post and graph in this forum.

 

[Gone4Good]

I appreciate the post from everyone.
One of my colleges retired in 2010 at 60 and managed his own accounts he left with 1.3, he is back has been back for about 4 years to work full time as a contractor at the age of 66
Of course I pulled him aside and asked "what happened" ?? He never changed his spending habits I am not even sure he had heard of the 4% rule. He still lived like he was making 100k a year.

Sounds like he had a bad plan, no plan, or some unfortunate mishap. The S&P 500 is up something like 80% since 2010 even with the recent correction. It's hard to see how any reasonable retirement plan would have gotten busted with the market we've enjoyed over the last 6-7 years.