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Old 12-26-2016, 04:43 AM
 
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One year from next Monday, age will be 64/8 months. FRA is 66. I have a pension.
I don't think "one more year syndrome" will affect me. I am too tired of working to dance on the head of a pin.
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Old 12-26-2016, 04:48 AM
 
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Quote:
Originally Posted by brightdoglover View Post
I hope to retire a year from next Saturday and am having the "But... but... one more year..." syndrome. Of thinking, anyway. How much is enough? (I have a pension). I'll be four months short of 65 in one year (and my Soc.Sec. FRA is 66).
How much is enough?
it is the old carrot on a stick syndrome . for some this is how they live their financial lives .

they win the game but keep playing by keeping the carrot on the stick . either by working until they get sick and can't work or by making heavy bets on volatile assets and then getting caught in a downturn and wishing they got out sooner . .

some will just never take the carrot off the stick until they get forced in to it . for many , the attempts to run up the score after they won the game only works until it doesn't and then it does not end as planned . .

the last 8 years were very good for equity heavy positions . but trees don't grow to the sky and i have little intention of giving a major part of it back and having to wait possibly years for recovery so recently i made my portfolio more defensive and able to make money in a down cycle to. more gains will not influence nearly as much as a good down blast will .

but if i didn't already win the game , then i would have to keep playing .

Last edited by mathjak107; 12-26-2016 at 05:39 AM..
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Old 12-26-2016, 06:09 AM
 
Location: Haiku
4,141 posts, read 2,587,409 times
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Quote:
Originally Posted by brightdoglover View Post
I hope to retire a year from next Saturday and am having the "But... but... one more year..." syndrome. Of thinking, anyway. How much is enough? (I have a pension). I'll be four months short of 65 in one year (and my Soc.Sec. FRA is 66).
How much is enough?
To get a good answer to what you need for retirement really requires some analysis. You can use the very crude rule of thumb which is 25x - you need 25 times your annual spending. But that is an old rule and may be too low at this point.

Some of the things you need to know in order to figure out whether you have enough savings:
- Your sources of income. COL adjusted pension?
- Your budget for retirement. Will it be constant or high spending early years, low spending in later years?
- Taxes
- Health insurance (Medicare supplement? Long term care insurance?)
- Debts
- Tolerance for risk
- Degree of certainty you want in your plan. Many people want 95% confidence level that they will not run out of money, but some people lower that to 90 or 85%. More confidence translates to you either needing more savings, or you spending less money in retirement.

There are retirement planning tools. Fidelity has a good one.
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Old 12-26-2016, 06:21 AM
 
71,735 posts, read 71,829,507 times
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we basically waited until we had a clear cut picture of our retirement a few years before to piece the lifestyle part together .

we needed a clear cut direction first with real world numbers that were fairly accurate .

we took most of the non discretionary expenses we had and added them up . we included the things we knew were not going to change much unless forced in to it .

our gym ,our rent ,utility's ,insurances , etc were all non discretionary .

then we multiplied that by 2x to come up with a total budget that included food,travel ,gifts ,entertainment , etc .

so lets say hypothetically our non discretionary was 50k . we would make our our target budget 100k

we subtracted out ss ,pension and any other income .

lets say hypothetically that was 50k .

so 50k has to come from savings .

a quick check shows to safely draw that we would need about 1.25 million in savings and invested at least 35-40% in equity's according to a safe withdrawal rate calculator.

we can then make changes in the budget if we had to since the discretionary part was 50% of all spending .

if needed we could see what to eliminate or if we wanted to increase equity allocations .

don't forget depending on your retirement allocations to produce the same level of income you may need 2x the asset base if you wanted to avoid equity's . .
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