retiredprofessor
Confused about dryer sheets
- Joined
- Jan 15, 2024
- Messages
- 2
I have been listening to “The Retirement and IRA Show” podcast over the last year. It has influenced my thinking toward retirement spending. Their philosophy is that your basic needs (housing, insurance, food, transportation, healthcare, etc.) in retirement should be covered, preferably by an secure income stream. They called this the “Minimum Dignity Floor".
They suggest you project the MDF expenditures for, say, a 30+ year retirement, and then confirming you have sufficient secure income to pay for the MDF. If you fall short, you need to set aside money to fund the shortfall (e.g., buy an annuity, purchase a TIPs ladder).
Any "excess money" you can spend on "fun". The advantage of the MDF (relative to something like the 4% recommendation) is that you can spend more fun money early in retirement, during your go-go years.
I'm thinking of putting a spreadsheet to help me calculate the MDF (and, in turn, my "fun" money).
Has anyone already done such an exercise? If so, can you share it?
They suggest you project the MDF expenditures for, say, a 30+ year retirement, and then confirming you have sufficient secure income to pay for the MDF. If you fall short, you need to set aside money to fund the shortfall (e.g., buy an annuity, purchase a TIPs ladder).
Any "excess money" you can spend on "fun". The advantage of the MDF (relative to something like the 4% recommendation) is that you can spend more fun money early in retirement, during your go-go years.
I'm thinking of putting a spreadsheet to help me calculate the MDF (and, in turn, my "fun" money).
Has anyone already done such an exercise? If so, can you share it?