I just read a thread where a poster said something to the effect of "our pension meets most of our needs so we will only have a withdraw rate of 2.5% from our IRA".
Not to pick on him, as its his money to do with what he pleases, but Im just wondering why people think this way. Im dead center of the LBYM crowd and my savings rate during this accumulation phase is VERY large. It boggles my mind how much my wife and I are saving (while still not feeling like we are sacrificing much)....BUT...the whole point of this for me is to live much more comfortably in retirement.
I have a pension also, and if I retired in my current house, I could live with a zero % withdrawal rate and maintain my current lifestyle in retirement, but why would I want to do that? Initially , the whole point of saving was to make sure I could retire without having to eat dogfood. At this point, I want to live the best retirement possible. I want to move to a nicer more expensive area, travel extensively, have nicer cars, get a boat...ect..
I want to withdraw the maximum amount possible (as per firecalc) and let that determine my standard of living which will be extravagant compared to how we live now as oppossed to continuing to live like we do now and letting my assets grow to millions and millions for someone else to enjoy.
Sure I want to leave money for my son, but assumming that FireCalc is correct and withdrawing 4% will allow you to never run out of money, there will be plenty left for inheritance anyway.
As I said, I live well below my means now so I understand that mindset but I dont understand why people want to continue to do it after retirement.
Thoughts?
Not to pick on him, as its his money to do with what he pleases, but Im just wondering why people think this way. Im dead center of the LBYM crowd and my savings rate during this accumulation phase is VERY large. It boggles my mind how much my wife and I are saving (while still not feeling like we are sacrificing much)....BUT...the whole point of this for me is to live much more comfortably in retirement.
I have a pension also, and if I retired in my current house, I could live with a zero % withdrawal rate and maintain my current lifestyle in retirement, but why would I want to do that? Initially , the whole point of saving was to make sure I could retire without having to eat dogfood. At this point, I want to live the best retirement possible. I want to move to a nicer more expensive area, travel extensively, have nicer cars, get a boat...ect..
I want to withdraw the maximum amount possible (as per firecalc) and let that determine my standard of living which will be extravagant compared to how we live now as oppossed to continuing to live like we do now and letting my assets grow to millions and millions for someone else to enjoy.
Sure I want to leave money for my son, but assumming that FireCalc is correct and withdrawing 4% will allow you to never run out of money, there will be plenty left for inheritance anyway.
As I said, I live well below my means now so I understand that mindset but I dont understand why people want to continue to do it after retirement.
Thoughts?