Retire and Retire Again

[GravitySucks]

Retired in 2013 at 54. Moved all but 4.5% times 5 years from 401k funds to IRA. So 4.5% WR but no inflation added.

2018 turned 60 and started my small SS Survivor benefit. Moved to ACA as the megacorp benefit got too expensive. Planned on a WR of IRA minus what my age 70 SS over 10 years times 4.5 percent. COVID and health issues got in the way of spending that much but gifting DD2 a house got it up there. Inflation adjusted the stash is the same as it was 5 years ago.

The coming 5 year plan is to spend down a bit. Paid off the HELOC that I took out for DD2 house. Going to try to buy the new Land Cruiser first addition this spring. Looking at about a 6% WR for 3 years unless I can get a good loan rate for the vehicle. It will drop back to 4.5% years 4 and 5. The 8 year bond ladder of essential expenses got down to 3 years as when rates stunk I was buying only 1 to 3 year corporates. The ladder is back to 8 years and each rung now covers all planned expenses not just essentials. The ladder is also mostly treasuries and TIPs now. Not much left in bond ETFs now, just enough to rebalance into equities when we hit a 20% + drop. The brokerage account is almost depleted. Pretty much all is coming from the IRA. Might be able to convert a bit to Roth but I really don’t have a big enough portfolio to worry much about RMDs pushing me to IRMAA troubles.

At 70 my SS will cover my essentials plus a little more and I’ll Retire again.

Do you have milestones where you plan to make changes to your plan?

 

[Dtail]

Retire and retire again for me is my updating Firecalc and other calculators every year as if retiring for the first time that year.

 

[Koolau]

Heh, heh, most of my milestones are in the past.

Receiving a modest pension from Megacorp at 58 for "doing nothing" was quite a nice milestone.

Moving from an average cost of living state to a high cost of living state shortly after retirement was probably the most significant milestone. There were a couple times when I wondered if it would all w*rk out. It has.

Going on MC with Megacorp supplement at 65 was a big deal. It cut my expenses significantly.

Transitioning from Megacorp supplement to supplement obtained on my own using a chunk of cash supplied by Megacorp. That helped expenses even more.

Then there there was SS at 70. Even though I'd calculated my benefit many times, when those monthly transfers actually began to happen, it was quite a nice surprise just how much that was going to be for the rest of my life (with COL adj!)

RMDs were not as frightening as I had feared. By the time they rolled around, I was already taking MORE from my 401(k) than the RMD. By the way, I missed every single one of the age-changes for RMDs! IOW I started RMDs at age 71.5. Now, as the RMD factor rapidly increases, I may struggle a bit more (taxes, IRMAA considerations, etc.) BUT, I'm currently w*rking on reducing the amount in my 401(k) so that I'll have more control over such things. Of course, that darned old Megacorp stock in my 401(k) is throwing me a curve ball by increasing (almost) exponentially. What a fantastic problem to have!

What is my next milestone? Hopefully not the big sleep. YMMV

 

[Still Learning]

Coming up on 5 years retired and just shifted plan to adjust for unanticipated CDs that mature in 2024. Closed the retirement income flow from retirement accounts to a trickle and will use CD interest this year to fund discretionary fund to remain in lower tax bracket. Expect CD rates will continue to fall so returns from retirement accounts will hopefully provide a better ROI.

 

[audreyh1]

I always used prior year Dec31 portfolio value to determine my withdrawal in Jan. So the amount goes up and down each year based on portfolio performance.

Theoretically I can take a much higher withdrawal percent and still be safe, but as we don’t even spend all we withdraw now that hasn’t been a pressing issue.

However, getting older so I always think about it.

I do keep increasing the gifting.

 

[USGrant1962]

Retire and retire again for me is my updating Firecalc and other calculators every year as if retiring for the first time that year.

That is the common usage of "retire again" in early retirement talk. Rerunning your model each year with a new portfolio value and one year shorter retirement period. Usually discussed in the context of rising markets.

But to OP's question, I certainly see taking SS as a step function in my retirement plan. My SS at 70 will represent at least 1/4 of my spending making a 4% planned WR into 3% or less (unless I decide to up my spending).

The other change in my plan is that I expected a little consulting income but didn't include it in my FIRECalc or other models. Well, I've have more than a little consulting income. So for the last few of years I kept pushing my "retirement date" out a year in my model. Very much a "retire and retire again" approach.