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-   -   What is your withdrawal rate ? (https://www.early-retirement.org/forums/f28/what-is-your-withdrawal-rate-31585.html)

Moemg 11-29-2007 05:39 PM

What is your withdrawal rate ?
 
I just ended my first year of retirement bliss and I only withdrew 2.5 % . No ,I did not live on Ramen noodles . I travelled ,ate out ,bought presents and paid for my Mother's nurse's aide .I know some years will be a 4 % but this year wasn't .

Rich_by_the_Bay 11-29-2007 05:53 PM

Nice going. You must have earned yourself a comfy nest egg.

Enjoy it.

RetireeRobert 11-29-2007 07:18 PM

Quote:

Originally Posted by Moemg (Post 582997)
I just ended my first year of retirement bliss and I only withdrew 2.5 % .

The 2.5% SWR makes the "bliss" part twice or three times as good as just regular "bliss"! You have nicely arranged your affairs;D

Alan 11-29-2007 07:36 PM

Quote:

Originally Posted by Moemg (Post 582997)
I just ended my first year of retirement bliss and I only withdrew 2.5 % . No ,I did not live on Ramen noodles . I travelled ,ate out ,bought presents and paid for my Mother's nurse's aide .I know some years will be a 4 % but this year wasn't .

So what did you do with the 1.5% you didn't spend? Invest it in an account outside of your nest egg or leave it within your portfolio? This is something I wonder about how actual RE's practice safe withdrawals ;)

Moemg 11-29-2007 07:53 PM

Quote:

Originally Posted by Alan (Post 583056)
So what did you do with the 1.5% you didn't spend? Invest it in an account outside of your nest egg or leave it within your portfolio? This is something I wonder about how actual RE's practice safe withdrawals ;)


Well the wild & crazy me was looking at new cars or exotic trips but the sensible me prevailed and it's safe in my portfolio !

aaronc879 11-29-2007 07:53 PM

Is there a down side to taking out too little from a tax deferred account. I'm thinking in terms of minimum mandatory distributions at age 70 1/2. You may be forced to take an amount that may put you in a higher tax bracket.

hogtied 11-29-2007 07:59 PM

2.5% - what for ???
 
Enjoy yourself, it's later than you think!

Khan 11-29-2007 08:25 PM

0% so far from retirement accounts; I did have to take some money from the MMA to buy a car.

CyclingInvestor 11-29-2007 08:38 PM

Large extra expenses in medical, travel, car replacement (not mine, but one I totalled) and taxes
on extra stock sales led to a 6% withdrawal rate in my first year of retirement. I expect to go back
to my planned 3.0 to 3.5% rate this next year, but if not, hey, that's what the extra reserves I built up
by working 2+ years longer than I needed to are for. I still have substantially more than I retired with,
and am unconcerned that my expenses were higher than expected.

Bikerdude 11-29-2007 09:11 PM

Withdrawal rate
 
4%

dex 11-29-2007 09:18 PM

2.46% - Year 1

RedHawk 11-29-2007 09:19 PM

Quote:

car replacement (not mine, but one I totalled)
Were you driving the totaled car or did you hit a car ?

Lsbcal 11-29-2007 10:15 PM

What's to celebrate if you underspent? On the other hand, perhaps you are 23 years old and 2.5% is an appropriate level given your age, AA, etc. Nobody's gets to keep their money at the end ... er, I think that I'm right on that one. Your heirs may celibrate though.

Alan 11-29-2007 10:20 PM

Quote:

Originally Posted by Moemg (Post 583062)
Well the wild & crazy me was looking at new cars or exotic trips but the sensible me prevailed and it's safe in my portfolio !

I was thinking that perhaps if you kept that extra money invested outside your nest egg then if you continue to have good years you may well feel safe enough to splurge on some exotic trip or new car.

heyyou 11-29-2007 10:31 PM

aaron- Look into doing annual, partial Roth conversions as a way to reduce the size of your sheltered account. See Fairmark.com for details. The gov't is going to someday get its taxes from your tax-DEFERRED account.

audreyh1 11-29-2007 10:46 PM

Quote:

Originally Posted by Moemg (Post 583062)
Well the wild & crazy me was looking at new cars or exotic trips but the sensible me prevailed and it's safe in my portfolio !

Is it really "safe" in your portfolio? It might be better to put the excess in a cash hoard for when you are ready to spend it or have a sudden unexpected need for ready cash.

Audrey

CyclingInvestor 11-30-2007 02:13 AM

Quote:

Originally Posted by rjpatt (Post 583094)
Were you driving the totaled car or did you hit a car ?

I was driving the totalled car, borrowed from a friend. My first at-fault accident. Insurance
covered the damage to the other car, but I paid a total of about $10k to replace the Crown
Vic I was in with an Explorer. I was hit broadside right in the drivers door by a car going
about 45-50 mph. It only gave about 6". If I had been in one of my cars (Celica, Accord,
Corolla) I probably would have been killed or badly injured, instead of suffering only a
minor neck strain.

haha 11-30-2007 03:36 AM

Quote:

Originally Posted by CyclingInvestor (Post 583129)
I was driving the totalled car, borrowed from a friend. My first at-fault accident. Insurance
covered the damage to the other car, but I paid a total of about $10k to replace the Crown
Vic I was in with an Explorer. I was hit broadside right in the drivers door by a car going
about 45-50 mph. It only gave about 6". If I had been in one of my cars (Celica, Accord,
Corolla) I probably would have been killed or badly injured, instead of suffering only a
minor neck strain.

OK, I am convinced. My next car will be a Crown Vic. Maybe an ex police cruiser. Glad you made out so well. Sounds really frightening though.

Ha

OAG 11-30-2007 05:31 AM

Actually increased the investments by 10% - so I withdrew 0% or to be more exact -10%. That is a fully Cash (Laddered CD's) and includes additional CD purchases. I have 2 COLA'd Retirement Plans (Military and SS) which are enough. Next year, 2008, will start IRA RMD for DW and may "hit" the retirement ladder to repay SSA if I go through with the "do over" plan. Current thinking is that I will do it so in the next 34 months we may have to live off of a minimal of cash withdrawals to supplement RMD and Military Retirement before taking SS again at my age 70.

In-control 11-30-2007 08:07 AM

Being 45 years young - 0% from my retirement account, and ~4% from my taxable accounts. So far all of my budget needs are satisfied with Interest/Dividend and Cap. gains. So I have not touched the principle of my investments or their gains.


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