Poll:In broad strokes...

What is your actual spending pattern vs your FIRE stash?

  • Bounce the check to the undertaker

    Votes: 8 3.3%

  • "SWR" - spend down to zero on a historical average basis

    Votes: 28 11.5%

  • Capital preservation - die with the dollars you started with

    Votes: 27 11.1%

  • Spending power preservation - die with the spending power you started with

    Votes: 33 13.5%

  • Scottish style - grow the portfolio on average

    Votes: 95 38.9%

  • Uncle Scrooge - grow the portfolio with intensity

    Votes: 14 5.7%

  • I like bacon

    Votes: 39 16.0%
  • Total voters
    244
As the OP question said, right now I am in Scottish style, but mainly as result of the great market returns over past several years. My goal over long run is capital preservation.
 
We haven't been retired long enough to establish a true pattern, especially with COVID interfering. Since buying long-term care insurance doesn't really look practical, I think we will have to preserve capital.

Since less than 30% of our planned spending will come from retirement savings once we draw Social Security, this will have only a modest impact on our standard of living.
 
I told the kids that if there was anything left that it was estimating error on my part... but that's not really true... our retirement is probably significantly overfunded so unless the SHTF there will probably be a significant inheritance left for them... and that doesn't count any of the three inheritances that I'll likely receive... one of which is very significant.

I guess that I'm probably closer to Scottish style... we spend pretty much what we want to without trying to be wasteful and looking for a good value. After we start SS (DW this month and me in 5 years) our WR will be lower than the growth rate.

For example, we have a very nice 2001 Bennington pontoon boat that is in great shape and runs like a top that we bought for cash in 2014. Sometimes I pine for a new pontoon... the new ones have vinyl flooring rather than outdoor carpeting and sometimes I wish I had more than 40hp available... but a new pontoon close to what we have now but with a little more hp would be ~$35k. We can easily afford to spend $35k (actually $35k less our trade) for a new pontoon... but the one we have is quite nice, runs like a top and meets our needs nicely so it is hard to get excited to replace it even though it is 20 years old. Now if the upholstery were dodgy or the reliable Honda outboard would leave us stranded and needing a tow every so often then I could justify a raplacement.

Similar thing with our 2016 Outback with ~80k miles on it.... it is in great shape... in fact last fall we picked up some friends from the airport and the guy asked when we got our new car... runs like a top and no problems... just routine maintenance... considering trading because it is 6 years old but on the other hand... why (other than just becuse we can).

Yes, I know... first world problems.
 
Last edited:
Would have chosen Variable Percentage Withdrawal (VPW) if it had been in the poll. Although I don't intend to completely follow it. If I start closing in on my planned departure date, I'll reset and bump the departure date out to something I'm more comfortable with at the time.
 
I picked bacon. I spend more time in a year making our bacon than I do managing the portfolio.

18 years retired in an amazing bull market, we have long since passed the point where we have more money than we will ever need and have an adequate estate for the grands, our son, and our charities.

But successful investing is so easy, why not do it? Index. Buy & Hold. Done. We look at the portfolio once a year and some years we even make a trade. Much less time consuming than curing, smoking, and slicing bacon -- especially considering the time cleaning and sanitizing the slicer.
 
As noted in another thread a few weeks ago, despite DW's best efforts (heh!) we will likely end up with 4 or 5 X what we started with 15 years ago.

With 20-25 years left ahead of us max, a 5-6% WDR, a 70/30 mix and a few more bulk increases (inheritances) on its way, it's likely that we won't be able to 'keep up with the gains'.

We are, mindful however that while 6% might have an increase in NW, a 7% WDR could bankrupt us before life's-end. So it's a bit of a thread the needle act.
 
Fired since 2001, plan on dying broke, but won't since DW and I can't spend everything FireCalc says we can/should. Maybe hyper inflation will solve my underspending issue.
 
Retired 7 years ago and I've been keeping my average W/D rate below 3.5%. Average annual increase in the investments since retirement after withdrawals is over 4%. I want to keep it that way; Dad is in LTC now at over $100K/year and if I end up needing that level of care I don't want Medicaid deciding where I'll get it. I also don't want DS and DDIL to feel like they have to chip in.
 
I've been retired for about 14 years and seem to have trouble spending even the WR I allocate each year. For the past couple of years, I have pushed myself to take care of a few larger projects around the house (new HVAC, re-paved driveway, etc.) that needed doing. I still come in under budget, but at least I am doing a little better with the spending.
 
audreyh1 said:
We are fine with drawing down the portfolio over the long term, even down to half (inflation adjusted) of what we started with if necessary, but not all the way to zero as there may be some large lump sum needs near end of life.

I didn’t see where we would fit other than liking bacon.

Interesting - Jim59 from Glasgow is planning about the same.


I see now that several people are comfortable drawing down to some lower % of the original, but not anywhere near all the way down to zero.
Click to expand...
Yes, I should have added I will have a defined benefit as my main pension, so the intent of the response to the poll was for my other portfolio.
 
marko said:
As noted in another thread a few weeks ago, despite DW's best efforts (heh!) we will likely end up with 4 or 5 X what we started with 15 years ago.

With 20-25 years left ahead of us max, a 5-6% WDR, a 70/30 mix and a few more bulk increases (inheritances) on its way, it's likely that we won't be able to 'keep up with the gains'.

We are, mindful however that while 6% might have an increase in NW, a 7% WDR could bankrupt us before life's-end. So it's a bit of a thread the needle act.
Click to expand...

Quoting myself here. At 3:30 the Dow is down 650, so......forget about what I said above, ok? :LOL:
 
Our investment portfolio has doubled since we retired.

Our goals will be to pay for our grandchildren's post secondary education and to provide a retirement fund for each of our two children.

We are certainly not scrimping or afraid to spend money. Lots of extended international travel each year.

We consider ourselves to be very fortunate. Especially because we have the good health to enjoy our retirement.
 
Last edited:
I voted Scottish. Not because I'm cheap or frugal, but like many here, I retired with more than I needed and just don't have a long BTD list. I live mostly on pension/non-portfolio income, so the portfolio has naturally increased (so far ;)).
 
I voted capital preservation, because That's what's happened so far. I'd love to hit SWR, but doubt my nerve to do so.
 
SecondCor521 said:
My intentions five years ago were SWR, but I'm closer to Scottish style in actual fact after five years.
Click to expand...

I would say my intention was preservation, but has also been Scottish. I keep spending more every year, but the portfolio rises more yet.
 
voted capital preservation, but more likely will grow over time (hopefully)!
 
I don't like bacon. Can you put in a chocolate option?
 
I chose Scrooge but with substantial donations along the way and with our heirs approval.
 
W2R said:
Guess I flunked out of BTD school! But I am happy and I get a certain glee out of saving money and still living my best retired life. I'm sure Daylatedollarshort and several others here could relate to that feeling! :D

Anyway, I voted "Uncle Scrooge" even though I have just been sitting tight and letting Mr. Market do his magic.
Click to expand...

I'm actually not opposed to selective BTD. We have some major home improvements planned for this year. But I'm with you on the glee from saving money and finding new frugal hacks. Why overpay? We've been retired ten years and we keep finding new ways to live better for less.
 
Last edited:
  • Like
Reactions: W2R
With my WR getting to be so low due to both portfolio growing and expenses shrinking, I guess I have to choose between Scottish or Scroogy, but I do not like the way the choices are presented. :)
 
I chose Scottish style. We are spending about 3% of our investment account annually, have not started any of our company pensions, and are not old enough yet for state pensions. Our NW is growing, such that the boat we longed for will soon be a reality.
 
I feel so stupid. I can't figure out what I Like Bacon means in reference to this poll. Please enlighten me. I never got the memo.:confused:
 
Gumby said:
If nothing else is true, everyone likes bacon.
Click to expand...


Ahhhh. Thanks.

So I checked Scrooge, because our WR hovers somewhere between zero and less than .5%, largely because we have significant pensions. One could say we definitely over saved, and could have retired much sooner, but in reality DH did retire in 2008 and I was self employed and loved what I did to bring in the bacon.
 
You must log in or register to reply here.

Similar threads

C
Age difference in relationships post-FIRE
2
Replies
38
Views
4K
old medic
O
S
Video Editing Software??
Replies
14
Views
759
Golden Mean
G
sengsational
Meditation Resolution
2 3 4
Replies
81
Views
5K
ERD50
E
R
I finally did it!
Replies
18
Views
2K
rk911
rk911
Koolau
BFF 0.5 Million In Debt at 79 Has Passed Away
2 3 4
Replies
92
Views
10K
Koolau
Koolau

Latest posts

Back
Top Bottom