Poll: FIRE funds to cover monthly costs come from?

[zekeboz]

Follow up to the earlier Fat FIRE II poll. Lets get a pulse on where you draw your monthly funds to cover living costs (which means everything from light bill to that Christmas Leg Lamp).

 

[SecondCor521]

Generally from my taxable account, but others will say from their RMDs, IRAs, pensions, SS, job income, and side gig income.

 

[Mr. Tightwad]

Rents, pension, and 457 withdrawal all go to checking. I pay everything and invest the remainder.

 

[Lewis Clark]

This will change over time for folks who have not yet started social security or pensions or annuities. But might be an interesting snapshot.

 

[FLSUnFIRE]

I'm "watching" the leg lamp on Amazon... price has gone up since I started stalking it (inflation is another thread I know). Still want one for my front room window but not rich enough to afford it at today's prices.

 

[Dash man]

Dividends, interest, pension, savings account.

 

[pb4uski]

Currently, my pension and DW's SS based on her work record cover about 28% of our annual spending. Once my SS starts my pension and our SS (hers will increase to be half of my PIA) will cover about 82% of our spending.

 

[zekeboz]

I'm "watching" the leg lamp on Amazon... price has gone up since I started stalking it (inflation is another thread I know). Still want one for my front room window but not rich enough to afford it at today's prices.

Now that would be an interesting indicator, similar to the Big Mac index!

So for fun here is what I paid for one back in 2009.

Item Name: A CHRISTMAS STORY 20" LEG DESK LAMP (LICENSED)
Price (with shipping): $49.99

Today (original vendor is not in business)
Amazon: 69.99
https://www.amazon.com/Christmas-Story-inch-Replica-NECA/dp/B0000C6ECF/ref=asc_df_B0000C6ECF/?tag=hyprod-20&linkCode=df0&hvadid=193177650676&hvpos=&hvnetw=g&hvrand=11521850523175407277&hvpone=&hvptwo=&hvqmt=&hvdev=c&hvdvcmdl=&hvlocint=&hvlocphy=9002445&hvtargid=pla-500436141512&psc=1

 

[Dtail]

This will change over time for folks who have not yet started social security or pensions or annuities. But might be an interesting snapshot.

Yup that's us.
Currently at 25%, but eventually will be around 65%.

 

[DayDreaming]

Nearly 100% from pension, but if you asked me last year it would have been 100% securities.

 

[Golden sunsets]

Cash deposited at the beginning of each month, from Pensions, SS & VA Disability covers on average 110%-130% of all of our expenses, including lumpy items, EXCEPT Income Tax. The excess 10-30% is deposited into our taxable brokerage account. Our RMD's, withdrawn at the end of December, cover 100% of our income taxes. The balance of the RMD's go into our taxable brokerage account. Net expenses INCLUDING TAXES covered by Pensions/SS, etc. this year is 86%

 

[karen1972]

95% securities, 2% Pension, 3% paid volunteering.

 

[ShokWaveRider]

SS covers all our general expenses. Other expenditures are funded from our stash.

 

[Montecfo]

interesting that on a site for "early"retirement 75 percent (current poll) draw pensions.

I'm 100 pct securities.

 

[2017ish]

100% from securities in TIRA accounts (first three years drained the taxable accounts).

In 10 years, we will both be 70. Anticipate that any social that we get then will go directly to grandchildren educations--at least after IRMAA/medicare takes a bite...

 

[Time2]

I get a small amount in dividends ($10k) and the rest I take as LTCGs from a taxable account. I keep income under $80k so the tax is $0.

Another year I used some taxable account income and did Roth conversions, but kept us in the 12% bracket.

 

[SecondCor521]

interesting that on a site for "early"retirement 75 percent (current poll) draw pensions.

I'm 100 pct securities.

This site has been around for a while - 10 or 15 years maybe?

It is possible that people retired early on taxable or 72t or whatever and then started pensions later. If this same poll is posted 18 years from now I'll answer some SS.

Some people can also draw pensions early enough to still call it early retirement.

Finally, some people retired early a long time ago. I think intercst retired at age 38 back in the early 1990s and I'm pretty sure he's on Medicare now so he could be on SS.

 

[scrabbler1]

100% bond fund dividends. I'm not old enough to take my pension or SS and not quite old enough to take any distributions from my tIRA (not that I would need them nor would I take them unless absolutely necessary).

 

[Freedom56]

My pension covers all our monthly expenses with about 20% margin. We have yet to withdraw from any tax exempt accounts so they continue to accumulate. With respect to taxable investment accounts I only withdraw amount to pay income taxes but otherwise they continue to accumulate.

 

[zekeboz]

interesting that on a site for "early"retirement 75 percent (current poll) draw pensions.

I'm 100 pct securities.

Yeah, also a little surprised.

Though early on in our FIRE prep. it was a nice surprise to learn that my DW who is a teacher can start collecting a pension at 56+ (after putting in 30+ years) with no penalty and still be on the town health ins. plan current rates until Medicare kicks in.

It is not the golden goose but it does provide 60% of her highest 3 years of earnings. So just her pension will cover roughly 55-65% of our monthly expenses and bring down our SWR to 1-2.5% per year.

 

[1242Vintage]

Pension covers monthly expenses with a 50% margin. Leftover goes in and builds up in checking account for lumpy expenses (newer car or car repairs, home improvements and travel).

 

[Midpack]

The periodic SIRE v FIRE poll, nothing wrong with that. I voted though my answer is in my sig line. 100% SIRE and 100% FIRE are very different circumstances, dis/advantages to both.

 

[Sue J]

We live on 82% of the combination of DHs pension and HRA benefit and save/invest the rest. My SS benefit and small PT income are 100% saved/invested. Feeling very secure about SIRE (Secure Income Retired Early).

I love that term.

 

[pb4uski]

interesting that on a site for "early"retirement 75 percent (current poll) draw pensions.

I'm 100 pct securities.

My second two employers offered pensions. While I was at the second for 6 years it was before 5-year clif vesting was mandated so I missed out on that one. I was with the thrid employer 12 years and therefore quaified and vested in their plan... it meets about 18% of our target spending (though we usually spend less).

 

[jollystomper]

Pension more than covers regular monthly expenses. Not having a mortgage certainly helps. DW's SS, even small, is like an extra bonus .