marko
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Mar 16, 2011
- Messages
- 8,509
This is a bit of a spin-off from the "My net worth has increased 74% since I retired" thread.
First world problem:
As I'm a stone's throw from hitting age 70, (i.e. the horizon is no longer 35 years away, more like 20-25) DW and I are in the box of figuring out whether to goose the spending or die with potentially $10MM going to heirs and charities.
You have a growth rate, but you also have an end date and they are going in opposite directions!
That evolving thought process has been an interesting transition for us.
What I don't want is to be 89 years old and wondering how we'll pay the bills; what we both don't want is to leave tons of money to nieces and nephews who could likely end up in the 'lottery winner syndrome' and charities (trusts aside)
We don't deprive ourselves and do live quite 'high', but we're trying to thread that elusive, ultra thin eye of the needle between spending more vs running out of money as very elderly people.
Our WD rate has been in the 5-6% range over the past 15 years (10% this past year--new house) but the portfolio keeps growing and we do see lower costs ahead (DW hitting Medicare, eventually dumping $10K a year of boat maintenance) which will only exacerbate the situation.
It's the old 'die, having bounced the check to the undertaker' problem but neither a withdrawal rate nor a growth rate are consistent or linear.
The crux of it is that a large withdrawal today could 1) eventually deteriorate the portfolio 15 years from now or 2) make no difference whatsoever.
Comments? I'm not necessarily looking for advice but more hoping to spark a conversation
First world problem:
As I'm a stone's throw from hitting age 70, (i.e. the horizon is no longer 35 years away, more like 20-25) DW and I are in the box of figuring out whether to goose the spending or die with potentially $10MM going to heirs and charities.
You have a growth rate, but you also have an end date and they are going in opposite directions!
That evolving thought process has been an interesting transition for us.
What I don't want is to be 89 years old and wondering how we'll pay the bills; what we both don't want is to leave tons of money to nieces and nephews who could likely end up in the 'lottery winner syndrome' and charities (trusts aside)
We don't deprive ourselves and do live quite 'high', but we're trying to thread that elusive, ultra thin eye of the needle between spending more vs running out of money as very elderly people.
Our WD rate has been in the 5-6% range over the past 15 years (10% this past year--new house) but the portfolio keeps growing and we do see lower costs ahead (DW hitting Medicare, eventually dumping $10K a year of boat maintenance) which will only exacerbate the situation.
It's the old 'die, having bounced the check to the undertaker' problem but neither a withdrawal rate nor a growth rate are consistent or linear.
The crux of it is that a large withdrawal today could 1) eventually deteriorate the portfolio 15 years from now or 2) make no difference whatsoever.
Comments? I'm not necessarily looking for advice but more hoping to spark a conversation
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