Coming on Board - RE at 55 now 67

[RASmith]

I’m a 67 years old widower with no debt and likely will live to 90 if I give up paragliding & riding motorcycles. I’ve run FIRE calc with a few hundred different scenarios and I still can’t saw I feel confident on the spending aspect, saving I’ve figured out.

Let me see if I get this straight for a practical application of the 4% withdrawal rate excluding pension & SS (I've read the discussion on 4% withdrawal).
If investments are worth 3 million (excludes home) yield $100,000 annually (some is tax advantaged), so 4% of 3 million - $120,000 + $25,000 for pension & SS = $145,000. I would have to triple my current spending to come up to that number. So I guess I need to figure out this spending thing.

The "kids" are doing great financially – both engineers. The boy is the black sheep of the family, getting his Ph.D., but it will pay off someday I’m sure. The girl is spinning wafers for Intel.

I’ve been following this forum for over a decade, but only decided to jump on board because it really is hard to talk about finances and I’m feeling a little lost right now. I keep things simple, that's what's worked for me.

 

[MichaelB]

Welcome to the forum, RASmith. Your current spending is less than your pension plus the 4%? Good. Nothing to worry about, except perhaps who you will leave your assets to. The 4% is not a requirement, it's more of an upper limit. Good luck.

 

[Masquernom]

You just need to remarry. Then spending won't be a problem any longer....

 

[Walt34]

Welcome!

You could always buy more motorcycles. Or an airplane, that will absorb any excess cash quickly.

 

[obgyn65]

You are doing great, congratulations. Welcome to the forum.

 

[RASmith]

Thanks all for the welcome, nice to be onboard with folks that understand how to plan for their future (as best as anyone can).

Nothing to worry about, except perhaps who you will leave your assets to.

My wife and I established trusts (Family & Decedents) to facilitate distribution of assets to the kids. Taxes are a bit of a pain with the Decedents trust (generates a K-1), but nice to avoid probate.

You could always buy more motorcycles.

Actually that has been on my mind. I use to race motorcycles in the California desert and have been thinking about adding a dual sport. Problem is those things have saddle heights that challenge my 27 inch inseam. Maybe a Yamaha XT250?
　
　

You just need to remarry. Then spending won't be a problem any longer....

Not going to remarry, got it right the first time just wish it had lasted (cancer).

 

[Live And Learn]

Welcome to the forum. After years of being a saver I would imagine its difficult to increase spending that much. Yours is a nice problem to have. If you need suggestions on how to spend down your portfolio we have lots of suggestions. The first thing that comes to my mind is a family reunion in some exotic location which will create life long memories for the kids.

 

[ERhoosier]

RAS-

Welcome aboard. Congrats on successful & active ER!!!
Nothing wrong with LBYM- even during ER.
BTW- Been visiting The Valley for 20+yrs (relatives & business trips) & always thought it would be a great place to ER. Not downtown PHX, but maybe north of Scottsdale (Carefree/Cave Creek area) or perhaps East Valley.

 

[pb4uski]

You're doing great - you need to spend more. Maybe one of those Can-Am trike rigs.

Would you care to adopt a 57 year old?

 

[heeyy_joe]

Come with me to bet on horseracing and your spending problem will be solved (if you duplicate my bets).

 

[Northwoods Mary]

We looked at Cave Creek too. Seems like it would be a really fun place to spend half the year, especially if you're horsey or like the Old West genre. Home prices there were great a couple years ago, but I think have risen a lot lately...