Trawler
Recycles dryer sheets
OK I have run many of the RE calculators out there in search of the perfect bullet proof plan that can tell us we will have enough $$ to live the way we would like the rest of our lives and have come away with the following as we really do not know for sure :
Note: Know that Sailing is one of DW and I's passions.
I find financial planning for retirement is much like charting a long sailing trip. As we plan a sailing trip we chart the course. We make assumptions based past experiences, the study of historical data, charts, weather and tide forcasts, and other variables. Check the safety gear. We then pack the boat and cast off. Once we get out on the journey things change due to weather, our own tolerences to heavy weather, repairs, enjoying some ports more than others etc. etc. etc. . Thus we remain flexible and adjust the course as reality comes to us on our sailing journey so we safely reach our final destination .
So the take away for DW and I are
We need to remain flexible in our financial journey.
First we, prepare, understand our tolerences to volitility, chart the financial course and properly to the best we can pack the portfolio do a safety check and finally shove off on the journey as no calcutaor can tell us what the journey will actually bring us as there are too may variables.
To prepare we are packing the portfolio and checking the safety of our financial journey. We will have a 2 bucket nest egg. One with 4.5 years of cash to estimated expenses to ride out the market storms (2007 top then the crash 2009 and 2011 fully recovered plus) and take advantage of storm destruction by buying the good debris left behind. The second bucket is a balanced portfolio to our risk tolerance and financial goals with an estimated 4% wd rate of first year of our starting balance of bucket #2 to cover expenses. A 2.5% WD rate that would cover essential expenses and inflation is included . Might have cut expenses during rough markets and may increase expenses and replenish cash bucket in good markets. LTC and Medcial to be covered in expenses.
As we journey we will continue to make financial decisions and safety checks based upon where we are then and where we forecast the variables to be for the next leg of the journey and keep on the journey because it is all about making the journey and to the final destination safely.
The above anolgies areabout as simple as I can put such a complex project.
Done calculating . Need to shore up medical coverage and stow another 10% in the portfolio buckets and it will be time to cast off!!!
Hopefully Cast Off Jan 2013.
Note: Know that Sailing is one of DW and I's passions.
I find financial planning for retirement is much like charting a long sailing trip. As we plan a sailing trip we chart the course. We make assumptions based past experiences, the study of historical data, charts, weather and tide forcasts, and other variables. Check the safety gear. We then pack the boat and cast off. Once we get out on the journey things change due to weather, our own tolerences to heavy weather, repairs, enjoying some ports more than others etc. etc. etc. . Thus we remain flexible and adjust the course as reality comes to us on our sailing journey so we safely reach our final destination .
So the take away for DW and I are
We need to remain flexible in our financial journey.
First we, prepare, understand our tolerences to volitility, chart the financial course and properly to the best we can pack the portfolio do a safety check and finally shove off on the journey as no calcutaor can tell us what the journey will actually bring us as there are too may variables.
To prepare we are packing the portfolio and checking the safety of our financial journey. We will have a 2 bucket nest egg. One with 4.5 years of cash to estimated expenses to ride out the market storms (2007 top then the crash 2009 and 2011 fully recovered plus) and take advantage of storm destruction by buying the good debris left behind. The second bucket is a balanced portfolio to our risk tolerance and financial goals with an estimated 4% wd rate of first year of our starting balance of bucket #2 to cover expenses. A 2.5% WD rate that would cover essential expenses and inflation is included . Might have cut expenses during rough markets and may increase expenses and replenish cash bucket in good markets. LTC and Medcial to be covered in expenses.
As we journey we will continue to make financial decisions and safety checks based upon where we are then and where we forecast the variables to be for the next leg of the journey and keep on the journey because it is all about making the journey and to the final destination safely.
The above anolgies areabout as simple as I can put such a complex project.
Done calculating . Need to shore up medical coverage and stow another 10% in the portfolio buckets and it will be time to cast off!!!
Hopefully Cast Off Jan 2013.