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Old 09-26-2014, 01:07 PM
 
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Quote:
Originally Posted by TuborgP View Post
In reality you have set a minimum fixed income threshold which in your planning as I remember meets your expected expenses. That in theory/practice places your portfolio in a growth and not draw down mode. I just read a piece on using your RMD's as a yearly income flow and not touching your taxable accounts and letting them grow untouched having created sufficient income streams.
using rmds though produces very inconsistant income streams amount wise and can leave you well short or excessively spending based on that years markets. can you imagine never knowing your pension check amount?

you would really have to have a whole system that used rmd's as part of it as opposed to just rmd's themselves.

Last edited by mathjak107; 09-26-2014 at 01:19 PM..
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Old 09-26-2014, 03:08 PM
 
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Quote:
Originally Posted by mathjak107 View Post
using rmds though produces very inconsistant income streams amount wise and can leave you well short or excessively spending based on that years markets. can you imagine never knowing your pension check amount?

you would really have to have a whole system that used rmd's as part of it as opposed to just rmd's themselves.
It was directed at folks with sizable fixed streams who had to take RMD's anyway and pay taxes on them. You had to design your retirement portfolio accordingly.
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Old 09-26-2014, 03:15 PM
 
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there is always folks mentioning using the irs rmd schedule for determing withdrawal rates but like i said it is not a consistant income stream when that chart is used as the plan. it may have other uses but as a sole withdrawal method it isn't one i would ever consider alone.
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Old 09-26-2014, 03:52 PM
 
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Well I must say that I enjoy reading all the questions and answers most of you post here regarding SS.
I will be 62 in 6 years and was pretty sure that I would be taking that early SS check because that and my pension would pretty much pay for my expenses so I could let my 401 grow or take it for trips etc.

But after reading Mathjack going back and doing my calculations I have come to realize that it's better for me to draw from 401 to get me to 67 or 70 before drawing SS

Everyone has to do what makes them comortable the last thing you want to be doing in retirement is stressing about your income
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Old 09-26-2014, 04:01 PM
 
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In a perfect retirement i would have an annuity spinning off 40% more income guaranteed forever than i could do on my own coupled with life insurance guaranteeing money to heirs.

I would keep some money for major expenses and invest a bit for inflation protection.

I wouldn't even pay attention to markets or rates or even think about financial matters.

But now back to reality.
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Old 09-26-2014, 04:19 PM
 
Location: Whereever we have our RV parked
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I think when to take SS is relatively simple. If you hate your job, are in poor health or a few other reasons, there's a simple solution. Take your SS. If its not enough, find a part time job to supplement your income. But if you like your job, like where you live, and are pretty healthy, I can't figure out why you'd quit. Need more time off. Talk to your employer about a leave of absence from time to time, maybe during the slow season. There's lots more things to think about rather than just, how long will I live(no one knows that) or how can I get the maximum benefit from the govt.
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Old 09-26-2014, 04:23 PM
 
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when you take ss has nothing to do with when you leave a job. it only has to do with your financial responsibilities to your expenses and your spouse if you have one.

it may even boil down to the fact regardless you may not be able to afford to leave that job yet and don't have the savings for it.

i will say that generally those who don't have at least 4-1/2 years of money to lay out may be very under funded to start with. a healthy retirement footing should enable it to be a choice not a need to file early.

it is like i get first month ,last month and a month security from tenants. if they can't just come up with it then they are living to hand to mouth for me to be comfortable with them.


same here , i can see not collecting at 70 ,but until 66-1/2 or so should be able to be a choice not a need if you are on solid footing .
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Old 09-27-2014, 02:26 AM
 
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Quote:
Originally Posted by augiedogie View Post
I don't doubt the accuracy of the article, based on the data that is available today. However, IMHO, the average life span of American's will decline some. Why? Increasing rates of obesity. 2. The older generation tended to be more physically active. AS the generations come and go, it seems physical activity is decreasing. They tend to be more sedentary. That doesn't help longevity. 3. And the final cause will be decreasing quality and amount of health care available to those on Medicare.
Don't bet on it. There is absolutely no evidence in the mortality statistics of the trend you're describing. You need to budget to live to a very old age.
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Old 09-27-2014, 02:43 AM
 
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which is exactly why any statistic about longevity is meaningless. unless you know who is going to die you still need to plan to a ripe old age regardless anyway.
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Old 09-27-2014, 02:45 AM
 
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Deferred annuities (DIAs), ladies and gents! For about $150,000 today, if you are age 65, you can lock in a $100,000 a year income stream, starting 20 years from now, that lasts until you die. The cost for second-to-die is a little more. The price is so low because (1) half the beneficiaries will die before they collect anything, (2) more will die in a few years, so the issuer won't have to pay much, and (3) they have 20 years to invest your money before paying out anything. *There is risk*, because insurance companies occasionally do go broke, but state annuity guarantee boards make partial restitution (you do not want this but it beats getting nothing). And you need to have another pool of money that is not annualized, in case the DIA is no good.

If your $100,000 a year DIA kicks in at age 85, your investment problem then becomes paying for age 65 to 85. It's much easier to save and plan for 20 years of spending than for an indefinitely long period that could last until you're 107. Check out the literature on the topic: http://larrysiegeldotorg.files.wordp...on-promise.pdf. (The article is mine, it's been peer reviewed and published in the Financial Analysts Journal, and I have permission to publicize it. Moderators, please don't take it down.
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