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Old 04-23-2014, 06:16 AM
bUU
 
Location: Georgia
11,887 posts, read 8,670,935 times
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And so your conclusion is that it is better to live for dying?
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Old 04-23-2014, 06:33 AM
 
29,794 posts, read 34,894,042 times
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Originally Posted by bUU View Post
And so your conclusion is that it is better to live for dying?
Live for longevity as we have no idea when our time will come. I should have made it clearer that expressions from movies (it supposedly is) are not to many a viable plan. The actual movie quote is "Get Busy Living or Get a Busy Dying" from the Shawshank Redemption he after awhile just lived it and would remind me with different phrasings. So to give you a specific personal philosophy. Get busy preparing to keep living.
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Old 04-23-2014, 06:53 AM
bUU
 
Location: Georgia
11,887 posts, read 8,670,935 times
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I think that that's a pretty one-dimensional view, though, because (as I indicated earlier) it only seems to factor in the financial side of the matter. Making it pithy didn't seem to round it out any.
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Old 04-23-2014, 07:30 AM
 
29,794 posts, read 34,894,042 times
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Originally Posted by bUU View Post
I think that that's a pretty one-dimensional view, though, because (as I indicated earlier) it only seems to factor in the financial side of the matter. Making it pithy didn't seem to round it out any.
That's all I am interested in discussing so that's for the most part what I discuss in the forum in much depth. Will chime in sometimes on other things. Do you really want to talk to me about the beach the other weekend and how beautiful the weather was, or the great Easter dinner with oldest son and family we had (Some great grilling and other assorted feast foods). Good time and a food feast? How about lunch last week on the Cape Fear river sitting out doors and having an awesome time with the wife. How about the mellowness of Accupuncture? Oh yeah a tad of excitement today is getting four new tires( need real good ones for summer travel) and having the lawn mowed for the first time today. Starting to green up and when mowed and edged it is time for it to start looking premier again. You know how these warm weather grasses turn brown in the winter. Oh well I have digressed off track and no one probably really cares but there is a side to all of this that the financial picture provides. Please people don't jump on me I am not trying to brag but bUU wanted something from me other than the financial side of it so I am just trying to give them a perspective of retirement. Will be going up the road to babysit the youngest grand in a couple of weeks and that will be a blast plus.
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Old 04-23-2014, 09:48 AM
 
741 posts, read 642,225 times
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Originally Posted by TuborgP View Post
They profess living and spent to enjoy while alive and able to enjoy retirement . They are now in their late sixties and broke. They took SS early so they could get it and enjoy it and not miss it when dead.
They acted foolishly.
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Old 04-23-2014, 09:52 AM
 
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Originally Posted by Longford View Post
They acted foolishly.
Big time and now have a royal chunk out of their rear end.
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Old 04-23-2014, 11:18 AM
 
Location: State of Being
35,885 posts, read 67,205,825 times
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Originally Posted by TuborgP View Post
Big time and now have a royal chunk out of their rear end.
So . . . it's not just those stuck in generational poverty who will be depending on government subsidzed housing, food stamps, etc. in their 70s onward . . .

Heck, they may be in a good position if either or both of them need to go into a nursing home. No spend down required.
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Old 04-23-2014, 12:16 PM
 
Location: North Idaho
2,172 posts, read 2,087,457 times
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Quote:
Originally Posted by caco54 View Post
I am not a believer in conspiracies. I think Lee Harvey Oswald killed Kennedy, case closed. However every time there is an article on retirement savings or SS like:

"You must have 8 times your pay in retirement savings"

" Only take 4% per year in withdrawals"

"Delay SS until 70.5"

The board lights up with "financial institutions want you to have more money so they make more money" and the "government hopes you die before 70.5".

Is this just good advice or do you believe there is an alterative motive to all these articles?
Delaying SS adds 8% to your benefit for each year beyond your FRA until you reach age 70. Depending on your situation it may be a good thing, or may not. Are you healthy? Do you have a long life expectancy based on your lifestyle, current health, and family history? If so, then maybe it is likely you will be around long enough to make waiting pay off. In my case my wife is 9 years younger than I am, we are both relatively healthy, and have a history of pretty good longevity in both our families. Based on that I plan to wait to 70 so that she can enjoy the highest SS benefit possible once I'm gone and she is collecting the spousal benefit.

The safe withdrawal rate (SWR) used to be considered to be 5%, then it went to 4%. Many people now think 3% is a better number to use given how long many of us will live and a growing expectation that market returns going forward will not be like the past 75 years. In the end, a SWR number is a guess anyway. You could be hit with a series of bad market years early in retirement and find that 3% is too high, or you could have a rip-roaring bull market early in retirement and be able to safely have a 6% SWR.

I haven't heard the 8 times number. The recommendation I've heard is actually 12X. It's just a rule of thumb, and it may work for you, or it may not. Have a great defined benefit pension? If so, you may be able to get away with less savings. Have no pension? 8X income will be way too low in that case.

When you spend time thinking about this I think the only realistic conclusion is that retirement is a process, and you need to stay flexible and be prepared to make adjustments based on the reality of your retirement.

Dave
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Old 04-23-2014, 01:42 PM
 
Location: North Idaho
2,172 posts, read 2,087,457 times
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Originally Posted by Cnynrat View Post
I haven't heard the 8 times number. The recommendation I've heard is actually 12X. It's just a rule of thumb, and it may work for you, or it may not. Have a great defined benefit pension? If so, you may be able to get away with less savings. Have no pension? 8X income will be way too low in that case.

Dave
I should add the multiples of your annual anticipated retirement budget make a lot more sense than multiples of your pre-retirement income. For example, a common rule of thumb is to have savings equal to 25 times your annual retirement budget minus social security and pensions:

Savings = 25*(Budget-SS-Pension)

That would be a rule of thumb equivalent to the 4% SWR. Again though, these rules of thumb are nothing but rough guidelines, not guarantees.

Dave
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Old 04-23-2014, 02:28 PM
 
29,794 posts, read 34,894,042 times
Reputation: 11715
Quote:
Originally Posted by anifani821 View Post
So . . . it's not just those stuck in generational poverty who will be depending on government subsidzed housing, food stamps, etc. in their 70s onward . . .

Heck, they may be in a good position if either or both of them need to go into a nursing home. No spend down required.
The worse part is the one guy has filed bankruptcy a number of years ago and has his house in foreclosure now andddddddddd. Has a full teachers pension and a military reserve officers pension and is working part time along with SS and has spent it all the other has a pension and SS and nary a nickle to rub together and a wife still working.
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