Will it last

[bobbee25]

I retired in 2005, small pension, my/wifes Social security and the nestegg.


Using the nets egg in various ret calculators I should have enough for x years.


However, due to the low inflation, the interest on the nest egg combined with the pension and ss, I have more than we require.


Should I be taking some from the nest egg, i.e. am I being too conservative ?

 

[REWahoo]

Should I be taking some from the nest egg, i.e. am I being too conservative ?

The only way to answer this question accurately is to know when you and your DW will die. Short of that, you're in the same boat as the rest of us, wondering if you are being too conservative - or not conservative enough.

By the time you learn the answer it will be too late to do anything about it.

 

[USGrant1962]

No idea without some real numbers and without understanding your spend plan and buffers built into that.

 

[NW-Bound]

... By the time you learn the answer it will be too late to do anything about it.

If faced with a life-threatening disease, one can always blow all his stash on some experimental medicine, however slim its chance of working.

If it works, great. If it does not, well, consider it a gift to further the advance of medicine.

PS. As for me, faced with the same thing, I would just take a one-way first-class flight to Holland.

 

[kgtest]

The only way to answer this question accurately is to know when you and your DW will die. Short of that, you're in the same boat as the rest of us, wondering if you are being too conservative - or not conservative enough.

By the time you learn the answer it will be too late to do anything about it.

+1. The best financial planner is the one who knows when you will die. (And your spouse). That's the only way one could truly 100% optimize. Is anything in life 100% though? Other factors that are important would be future inheritance or health considerations. Unhealthy people theoretically need to be more conservative with there higher health costs.



To simplify, I always want to aim for an A instead of 100%, in school an A- was roughly 90%, with a B+ beiing 89%, so just aim for within ~10% and you are getting an A. Sooo, if you plan to die at 90, then plan for dieing anywhere from 85 to 95.

 

[bobbee25]

The nest egg and longevity indicate enough to have the desired income.


But to date I haven't had to withdraw anything, relying on just the interst
for the income.

 

[OldShooter]

I use the following as a "pop quiz" after talking in my investment class about the uncertainty of inflation predictions:

You’re 75 years old, healthy, and reviewing your financial situation. Which would you prefer?

(A) You find that you’re running out of money.

(B) You find that you’ve saved more money than you really need.
​

 

[Mdlerth]

How long is a rope?

I calculate that you should withdraw from your nest egg exactly N dollars, where N is an integer somewhere between +/- one quintillion. This will absolutely guarantee that your nest egg lasts precisely x years.

Seriously, you haven't given any actual data for us to work with so there's no way to answer your question.

However, your inquiry does prompt a return question: What are you really trying to figure out?

 

[joeea]

Using the nets egg in various ret calculators I should have enough for x years.

However, due to the low inflation, the interest on the nest egg combined with the pension and ss, I have more than we require.

Within x years, do you believe inflation will stay low?

 

[imoldernu]

Should I be taking some from the nest egg, i.e. am I being too conservative ?

Maybe.

 

[W2R]

I use the following as a "pop quiz" after talking in my investment class about the uncertainty of inflation predictions:

You’re 75 years old, healthy, and reviewing your financial situation. Which would you prefer?

(A) You find that you’re running out of money.

(B) You find that you’ve saved more money than you really need.
​

I find that the answer to this quiz for me at age 70, is (B). I can tell you that this is GOOD.

Realistically, bobbee25, at some point you may need assisted living or nursing care or something like that, so the extra will allow you to choose someplace where the caregiving is relatively humane and where you can be happy in your final years. Either that, or unknown future conditions like inflation, war, illness, or market crashes could eat up the extra.

 

[grasshopper]

My experience is about the same as yours, retired in 2006 so I have a few years of trying to sort spending out. while my portfolio has grown $500K I realize that inflation wise it still may be a wash. But now I am looking at 13 less years of retirement that are under the bridge, with maybe 22 good years left to go. We have only jacked up our travel expenses since I turned 62 to about 20% of our spending. As for everything else we really don't have a lot of wants. I am not sure I know what to spend money on, oh and Ms G. agrees.

 

[mamadogmamacat]

13 yrs retired and asking what based on the lack of numbers given is, I assume, more of a philosophical question. Here's a philosophical answer: maybe, probably, or then again perhaps not. Do what makes you and yours feel comfortable.

On a more practical note, do you want to leave an inheritance or a boatload to charity(ies)? If not, perhaps it would help you to spend some time assessing your spending to see if the two of you have anything you want to have/do before you are too old to enjoy it.

 

[Katsmeow]

You talk about withdrawing and spending interest. That implies that you have no equities and only have interest bearing accounts. If so, that may be vulnerable to inflation in the future and the money may not last as long as you expect. However, if you don't need or want to spend the money then you certainly don't have to spend it.

 

[MarieIG]

You did not mention whether your pension is 100% joint and survivor, to protect your DW if you pass first.

Is there anything to prevent you from receiving DW's SS if she passes first?

 

[HI Bill]

Maybe.

Funniest response yet! Yet, given the paucity of information, completely appropriate!

 

[HI Bill]

I retired in 2005, small pension, my/wifes Social security and the nestegg.
Using the nets egg in various ret calculators I should have enough for x years.

However, due to the low inflation, the interest on the nest egg combined with the pension and ss, I have more than we require.

Should I be taking some from the nest egg, i.e. am I being too conservative ?

Is X years longer than you will live? If so, you might be able to take more out. If X years is lower than the period you will live, no! Seriously, how old are you, how is your health, how long do you THINK you will live, and what the other posters said...the older you get, the more you typically can spend, because the chances of running out of money as you approach 100 generally become much lower. Problem is, most people want to optimize spending right after retirement, not when they're 90-100 and are in the no-go years.

 

[fjfino]

Funniest response yet! Yet, given the paucity of information, completely appropriate!

you may also want to consult the Magic 8 ball