First, I acknowledge the answer is personal and depends on numerous factors, but this continues to have an affect on my willingness to launch into RE (targeting 3 yrs at age 55). My personal dilemma has been heightened by my dad's past 12 month battle with cancer, his recent death (age 77), and as Executor of his estate being exposed more specifically how he held/used his assets. Observations...
- He always lived below his means, very frugal other than a few vices, all the way till the end despite having more than enough to splurge on indulgences. I suppose it can be tough for many of us to change despite having saved for the rainy days.
- Not sure he was ever exposed to a SWR method even though he had a FA and a very conservative portfolio (33/33/33). I suppose he got more conservative during his treatment, but never heard more than 40% in stocks.
- His 2015 return implied he lived off of dividends, SS, and RMD which was more than enough.
I suppose this makes me ask the questions...
- Are we (most people on this site who have a RE strategy) being too conservative in our earlier years SWR?
- Are you factoring in SS in your future income projections and at what age are you planning to take it? This question is primarily for those of you in your 50's or less.
- Other than Roth conversions and managing your tax rate, how are you looking at the impact of RMDs at 70 1/2? Should we be taking more $$ sooner?
It seems to me that most people on this site are planners and probably more conservative by nature as am I. I also know peace of mind and the "sleep factor" weigh into at least my strategy along with planning for "what ifs". None the less, particularly after seeing my dad's situation play out, there is a part of me that says go bigger in the early years while more physically able and then perhaps scale down in the later years. Thoughts?
- He always lived below his means, very frugal other than a few vices, all the way till the end despite having more than enough to splurge on indulgences. I suppose it can be tough for many of us to change despite having saved for the rainy days.
- Not sure he was ever exposed to a SWR method even though he had a FA and a very conservative portfolio (33/33/33). I suppose he got more conservative during his treatment, but never heard more than 40% in stocks.
- His 2015 return implied he lived off of dividends, SS, and RMD which was more than enough.
I suppose this makes me ask the questions...
- Are we (most people on this site who have a RE strategy) being too conservative in our earlier years SWR?
- Are you factoring in SS in your future income projections and at what age are you planning to take it? This question is primarily for those of you in your 50's or less.
- Other than Roth conversions and managing your tax rate, how are you looking at the impact of RMDs at 70 1/2? Should we be taking more $$ sooner?
It seems to me that most people on this site are planners and probably more conservative by nature as am I. I also know peace of mind and the "sleep factor" weigh into at least my strategy along with planning for "what ifs". None the less, particularly after seeing my dad's situation play out, there is a part of me that says go bigger in the early years while more physically able and then perhaps scale down in the later years. Thoughts?