The Onceler
Dryer sheet aficionado
Here is something that must have been discussed (or is being executed) but I cannot find a topic identified as such.
I-orp allows one to view a few different withdrawal scenarios (e.g., constant, life cycles, age banding, etc.). The below got a little bit long — the short question is whether there is a calculator/analysis/study that says “go lean during ER so you can go more fat during regular retirement”?
I have not seen one that caters to an ER circumstance where:
1. The perceived value of ER is greater than the value of continued employment.
2. There is a gap period between employment end date and inception of (a) pension; (b) social security; and (c) perhaps, access to 401k/IRA funds.
3. Based on a combination of 1 and 2, the hopeful retirees are content to minimize withdrawal during the gap period in order to allow their assets to grow in those years (say 5-15 years, depending on (2), for the purpose of funding a larger withdrawal in the moderate-term years (e.g., say from 65-75).
4. The consequence of this approach would yield a curve that might ramp up (or step up) to account for deferred withdrawals in the gap period, then reach a high plateau during the “golden years” of say 65-75), then ramp down a bit for the next 10 (say 75-85), then perhaps go up again.
5. Obviously this approach implies a significant amount of discretionary spend in the overall plan.
6. I think I could probably concoct a plan by stitching together a few different scenarios from I-orp or the like. Has anyone seen a thoughtful write up of this and perhaps a calculator that allows adjustment of withdrawal rate in this way? I hope I haven’t missed it in I-orp but if so I’d appreciate the help in find where that can be adjusted.
I-orp allows one to view a few different withdrawal scenarios (e.g., constant, life cycles, age banding, etc.). The below got a little bit long — the short question is whether there is a calculator/analysis/study that says “go lean during ER so you can go more fat during regular retirement”?
I have not seen one that caters to an ER circumstance where:
1. The perceived value of ER is greater than the value of continued employment.
2. There is a gap period between employment end date and inception of (a) pension; (b) social security; and (c) perhaps, access to 401k/IRA funds.
3. Based on a combination of 1 and 2, the hopeful retirees are content to minimize withdrawal during the gap period in order to allow their assets to grow in those years (say 5-15 years, depending on (2), for the purpose of funding a larger withdrawal in the moderate-term years (e.g., say from 65-75).
4. The consequence of this approach would yield a curve that might ramp up (or step up) to account for deferred withdrawals in the gap period, then reach a high plateau during the “golden years” of say 65-75), then ramp down a bit for the next 10 (say 75-85), then perhaps go up again.
5. Obviously this approach implies a significant amount of discretionary spend in the overall plan.
6. I think I could probably concoct a plan by stitching together a few different scenarios from I-orp or the like. Has anyone seen a thoughtful write up of this and perhaps a calculator that allows adjustment of withdrawal rate in this way? I hope I haven’t missed it in I-orp but if so I’d appreciate the help in find where that can be adjusted.