Original Wally
Recycles dryer sheets
\Per Koolao: ***My "real" plan is to play it by ear and keep my spending flexible by - if need be - exercising any number of back-ups.***
Yup. I have a great spreadsheet (don't we all) that projects our portfolio to age 90 (as a target "zero" balance). But, it is completely flexible from year to year. We are almost 59 so this is a very long term projection. We have a good pension and SS. Our draw down plan anticipates that we will be more likely to travel, spend "wildly" (not likely) and so forth in the next 15 years (60-75) than in the subsequent 15 years (75-90). I fully anticipate slowing down as we age. We also have a good "long term care" policy in place. Over the years, when w*rking, we constantly made adjustments when wages changed. Or disappeared for a while. We have had "austerity" budgets before and could do it again. We try to not live in fear of the future, but enjoy today with an eye towards the future.
My base assumptions are COLA raises at 1.5% for Social Security,
COLA from pension at 2.5% (not sure WHY I set up the diff between SS and Pension.)
A desire to have an increased annual Cash Flow of 2.5% per year (since SS is less than that, the diff resultes in an ever increasing draw from portfolio).
I assume the portfolio will earn inflation + 3%
The numbers in the spreadsheet seem to work. NOW if only reality does as well.
Yup. I have a great spreadsheet (don't we all) that projects our portfolio to age 90 (as a target "zero" balance). But, it is completely flexible from year to year. We are almost 59 so this is a very long term projection. We have a good pension and SS. Our draw down plan anticipates that we will be more likely to travel, spend "wildly" (not likely) and so forth in the next 15 years (60-75) than in the subsequent 15 years (75-90). I fully anticipate slowing down as we age. We also have a good "long term care" policy in place. Over the years, when w*rking, we constantly made adjustments when wages changed. Or disappeared for a while. We have had "austerity" budgets before and could do it again. We try to not live in fear of the future, but enjoy today with an eye towards the future.
My base assumptions are COLA raises at 1.5% for Social Security,
COLA from pension at 2.5% (not sure WHY I set up the diff between SS and Pension.)
A desire to have an increased annual Cash Flow of 2.5% per year (since SS is less than that, the diff resultes in an ever increasing draw from portfolio).
I assume the portfolio will earn inflation + 3%
The numbers in the spreadsheet seem to work. NOW if only reality does as well.