Poll:What kind of adjustments do you make?

[kcowan]

When I managed the planning group for Megacorp, I always asked my planners to do a plus/minus 20% case and give conditions/assumptions for each case. We would spend most of the review on questioning the assumptions to establish a revised estimate.

I did the same thing when building the retirement plan. The plan has delivered on the positive side for 15 years (with a 2 year hiatus). We had built up enough buffer that that blip still stayed above the plan.

 

[Dtail]

Only pessimistic.

I also choose "significantly worse than average" market returns on Fidelity's retirement planner.

Interesting.I answered the question more so from any adjustment on the expense side. I also use the above module for Fidelity, but don't think of it as pessimistic (despite the title) due to its success rate concept of 90% is comparable to the "normal" 95% success rate of Firecalc.

 

[daylatedollarshort]

Our retirement plan is to spend < (Social Security + pensions + TIPS interest (or equivalent)). This includes a mortgage that will be paid off so that gives us some buffer /more discretionary spending down the road. Plan B would be to spend principal, downsize or move some place cheaper. We don't use Firecalc, just my own spreadsheets crosscheck that with the Fidelity planner. We should have about the same net worth as we do today in inflation adjusted dollars no matter what age we live to, less long term care or other extraordinary expenses.

 

[Badger]

When making financial decisions for retirement I was a belt and suspenders kind of guy. First and foremost was to make sure that if anything was to happen to me then my wife would be well taken care of and not have to worry about having decent food to eat, medical care, or a roof over her head in a safe place to live.


Now that we are retired I feel I can relax and am confident this has been achieved. Suspenders have been retired too.



Cheers!