U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 04-23-2014, 05:21 PM
 
Location: Northern IL
241 posts, read 226,988 times
Reputation: 481

Advertisements

Just my .02 but I am not convinced taking SS at 62 is the worst decision one can make. There are decent arguments either way. The key to retirement success is on the spending side....ie not exceeding your income and adjusting spending depending on changing circumstances.....
Reply With Quote Quick reply to this message

 
Old 04-23-2014, 06:11 PM
 
71,735 posts, read 71,829,507 times
Reputation: 49289
im some cases it can be a good choice. it is unique to each situation.

the real wild card is how the spouse will do with survivor benefits. a younger spouse and a husband taking ss at 62 can get whacked big time.
Reply With Quote Quick reply to this message
 
Old 04-23-2014, 06:25 PM
 
Location: Northern IL
241 posts, read 226,988 times
Reputation: 481
Agreed. I am still deciding and will prob do at FRA. I am the larger wage earner by far and DW is 5 years older than me, so our situation is not the norm (at least from most posters I read)........
Reply With Quote Quick reply to this message
 
Old 04-23-2014, 09:26 PM
 
10,819 posts, read 8,071,380 times
Reputation: 17034
Quote:
Originally Posted by jack_pine View Post
I am the larger wage earner by far and DW is 5 years older than me, so our situation is not the norm (at least from most posters I read)........
I'm in a similar situation and you're right, it does up-end the scenarios.
Reply With Quote Quick reply to this message
 
Old 04-24-2014, 03:39 AM
bUU
 
Location: Georgia
11,885 posts, read 8,668,795 times
Reputation: 8415
Quote:
Originally Posted by TuborgP View Post
That's all I am interested in discussing so that's for the most part what I discuss in the forum in much depth.
Fair enough - it's enough to agree that your perspective is based on a partial appreciation of the situation. Thanks for clarifying.
Reply With Quote Quick reply to this message
 
Old 04-24-2014, 03:54 AM
 
71,735 posts, read 71,829,507 times
Reputation: 49289
Quote:
Originally Posted by Cnynrat View Post
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
we arrived at our retirement budget by figuring out all our non descreationary bills which had to be paid hell or high water . we then multiplied that by 2x to figure for our decreationary spending. by having 50% of our budget allocated to descretionary spending we had a realistic budget with slack in the plan for cutting back if needed.

using hypothetical numbers if you figued out you have 20k in non descreationary bills your budget would be 40k.

if social security and other income came to 20k then you need 20k in withdrawals, maybe a little more to account for taxes.

i then times that 20k x 25 ,the same number you mentioned to determine what savings we need.

20k x 25 = 500k in savings.

looking at a success rate table to determine my withdrawal rate i find i am comfortable with a success rate in the 90% range and an allocation of 45-50% equities should be fine. that allocation fits in my comfort zone while providing the growth and inflation protection we want at the reliability level on the income stream we can see starting at.

so there you have a simple way of putting together a complete plan from budget to allocations that can at least serve as a guide and starting point as to what may be realistic for you.
Reply With Quote Quick reply to this message
 
Old 04-24-2014, 05:39 AM
 
Location: Central Massachusetts
4,800 posts, read 4,852,811 times
Reputation: 6379
Quote:
Originally Posted by mathjak107 View Post
we arrived at our retirement budget by figuring out all our non descreationary bills which had to be paid hell or high water . we then multiplied that by 2x to figure for our decreationary spending. by having 50% of our budget allocated to descretionary spending we had a realistic budget with slack in the plan for cutting back if needed.

using hypothetical numbers if you figued out you have 20k in non descreationary bills your budget would be 40k.

if social security and other income came to 20k then you need 20k in withdrawals, maybe a little more to account for taxes.

i then times that 20k x 25 ,the same number you mentioned to determine what savings we need.

20k x 25 = 500k in savings.

looking at a success rate table to determine my withdrawal rate i find i am comfortable with a success rate in the 90% range and an allocation of 45-50% equities should be fine. that allocation fits in my comfort zone while providing the growth and inflation protection we want at the reliability level on the income stream we can see starting at.

so there you have a simple way of putting together a complete plan from budget to allocations that can at least serve as a guide and starting point as to what may be realistic for you.

As we see here mathjak puts real thought and has actual, plausible and realistic numbers to put to the solution to a problem. As he says though you need to plug in your numbers, understand the mix of investments and be able to adjust some to changing conditions. If a wild swing happens it happens. There is no way to plan for that. You can only ride out the storm as best you can.

Thanks mathjak informative as always.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top