Fedup
Thinks s/he gets paid by the post
Who's mentioning keep working. I was referring to why 8-figure sounds better than 7-figure.DW and I like the sound of it--but not enough to keep working a few more years in hopes of achieving it.
How big was your nest egg when you FIRE'd?
- Thread starter Shabby
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wmc1000
Thinks s/he gets paid by the post
22x without SS - no pensions here
Lawrence of Suburbia
Recycles dryer sheets
17x spending. Not retiring til next year, though.
Am I being foolish? .... my WR will be approx 3.3%, though, once s.s. kicks in.
Am I being foolish? .... my WR will be approx 3.3%, though, once s.s. kicks in.
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CardsFan
Thinks s/he gets paid by the post
You need to look at withdrawal needs, not just spending.
Do you have a pension? Will you start SS right away? If so, you may well be just fine.
If not, then ........ I won't say foolish, but you are taking more risk than I would.
kcowan
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
A buddy has 4 houses (none rented), 4 cars, a Harley, a 68' yacht and a share of a 40' yacht here in PV. He is really nice and never acts like he is a decamillionaire.
I kid him about having to manage all his stuff and he agrees.
I kid him about having to manage all his stuff and he agrees.
Lawrence of Suburbia
Recycles dryer sheets
I think my actual drawdown means I have 30x. S.s. will be used
audreyh1
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Yeah - what matters is the income needs once other income streams are subtracted. That's what you divide into your retirement savings.
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CardsFan
Thinks s/he gets paid by the post
That makes much more sense. It's not the size of the portfolio that matters, but how much of it you need to take out.
I semiretired in 2015 and moved to Reno with a portfolio about 20x comfortable withdrawal (has about 30% slack).
We haven't withdrawn yet despite taking a considerable cut in income--I'm still working part-time online and DW is also working, so savings and investment returns now make the portfolio about 25x the planned withdrawal, with SS coming online in 6 years (so I can reduce the withdrawal rate if necessary then).
I'm telling DW she can quit next year if her bucket is full, but she first wants to meet with a planner for confirmation. The part-time work for my employer was possible, but not confirmed when I pulled the plug; I've been renewed for another 2 years, so if DW quits the withdrawal rate will be 1.5-2%. (I like working part-time on my own schedule, which keeps me out of too much mischief, but your mileage may vary.) Also, when DW reaches full SS age, SS will almost fund the minimum lean budget (80%), so I don't mind withdrawing at 4-5.5% for a few years before my SS kicks in.
We haven't withdrawn yet despite taking a considerable cut in income--I'm still working part-time online and DW is also working, so savings and investment returns now make the portfolio about 25x the planned withdrawal, with SS coming online in 6 years (so I can reduce the withdrawal rate if necessary then).
I'm telling DW she can quit next year if her bucket is full, but she first wants to meet with a planner for confirmation. The part-time work for my employer was possible, but not confirmed when I pulled the plug; I've been renewed for another 2 years, so if DW quits the withdrawal rate will be 1.5-2%. (I like working part-time on my own schedule, which keeps me out of too much mischief, but your mileage may vary.) Also, when DW reaches full SS age, SS will almost fund the minimum lean budget (80%), so I don't mind withdrawing at 4-5.5% for a few years before my SS kicks in.
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I was "poor" when I pulled the plug at 51. Didn't make any difference. I was going anyway. Had a defined pension and a necessity to enjoy time with my wife should she leave this world due to cancer. Only had $85K in my 401k, got two years salary when I left and medical insurance for "life". Thought I was in fat city. Here I am 29 years later, wife is a survivor, still with me enjoying life, portfolio has grown 8X due to good investments, real estate and luck. Never looked back but wouldn't recommend my method to anyone. As the old saying goes in golf, "I'd rather be lucky than good".
Johnny great post thank you ! I too am close and hoping to jump but keep waiting for the boat to get closer to the dock. But how close wait to the boat is tied to the dock ?
So seeing other post like yours helps.
Sent from my iPhone using Early Retirement Forum
So seeing other post like yours helps.
Sent from my iPhone using Early Retirement Forum
Marketwatcher
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Look at how much it would cost to purchase an annuity on the open market with the same characteristics as your pension. It's also a good way to determine whether you should take annual pension or a lump sum payment.
gayl
Thinks s/he gets paid by the post
Never thought of it that way but yeah that makes sense. So my pension is worth 710K
& ability to sleep well at night.
Koolau
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
What a great story! You've long been one of my FIRE heroes.
street
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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JOHNNIE36 >>>> you have done well and it just shows that if a person is disciplined it can be done. You really won the game and life went well for you and DW. Great story!
kcowan
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
John
Congratulations on you wife's good luck!
Congratulations on you wife's good luck!
sanfanciscotreat
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Added total spending, federal and state income taxes; subtracted SS and small annuity income. The remainder indicates invested NW is about 115X. Why am I agonizing about labor to spread pine straw around the shrubs?
jollystomper
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Current savings + investments are 17X our target spending, including taxes. I will also have a pension and the high end of SS. Just waiting for one slight breeze to push me into retirement...
1-31-18
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Financial assets at fiscal year end (being 61 and 59 years old) will be 42x a very comfortable budget (which we have never actually lived, being newlyweds this coming fall) and 33x a luxury budget which I'm sure we won't spend in the early years. More money likely to be received before FYE, but not guaranteed, would take these multiples to 44x and 35x. SS and home are excluded. Health is good, but feeling exhausted from 35 years of grinding (42 to 44 years if counting educational grind). Never mind that the multiples would be 17 to 20x higher but for expensive, untimely divorces. Does anyone feel what we've got is "not enough" and that I or we should keep grinding away beyond FYE?
Post script: I do plan to keep working for pay, part-time, but haven't arranged it yet and am not 100% committed to such work for any particular duration, or at all; and it's not in these numbers. But even working part-time in my field, it would be hard to earn an amount much less than we spend. So it's a good hedge.
Post script: I do plan to keep working for pay, part-time, but haven't arranged it yet and am not 100% committed to such work for any particular duration, or at all; and it's not in these numbers. But even working part-time in my field, it would be hard to earn an amount much less than we spend. So it's a good hedge.
Sounds like you are set. Your issues are psychological not actual. Before rushing into PT why not commit to no work for a while and give it a chance. It took me two years to trust the math and not worry about it.
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I'm planning for infinity X
In almost exactly two years, God willing, the young wife and I will retire. At that time, our two pensions will cover our current day to day expenses. A year and a half after that, I'll start social security, and it will pay for our current level of vacation travel. We'll be able to sustain our current lifestyle (which is fairly luxurious, I think) without drawing a penny from the portfolio. Although I suppose we'll find a way to travel more.
As a backstop, in the event our pensions and SS should somehow disappear, our portfolio (assuming no crash between now and then) will support the same spending at a 4% withdrawal rate. It would be 3% if we sold the house and added it to the stash -- our property tax, insurance and maintenance would rent a pretty nice apartment.
In almost exactly two years, God willing, the young wife and I will retire. At that time, our two pensions will cover our current day to day expenses. A year and a half after that, I'll start social security, and it will pay for our current level of vacation travel. We'll be able to sustain our current lifestyle (which is fairly luxurious, I think) without drawing a penny from the portfolio. Although I suppose we'll find a way to travel more.
As a backstop, in the event our pensions and SS should somehow disappear, our portfolio (assuming no crash between now and then) will support the same spending at a 4% withdrawal rate. It would be 3% if we sold the house and added it to the stash -- our property tax, insurance and maintenance would rent a pretty nice apartment.
