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you need a lot less than the old 4% rule ( which was never meant to be a rule ) dictates you do. the 4% safe withdrawal rate is based on inflation adjusting every year.
study after study concluded that retirees tend to spend in a smile shape .
they spend more early on in retirement going and doing things . then spending falls off a cliff. by 80 spending ramps up again because of healthcare ,gifting and chartable giving.
the end result is what you buy less of more than offsets the increases in what you stlll do buy making a lot less inflation adjusting needed.
this of course assumes not everything in your spending is a need. if there is nothing to cut back then you will need a lot more inflation adjusting.
home ownership and fixed rate mortgages cut the amount of inflation adjusting as well.
without figuring inflation adjusting every year 20-30% less capital may be needed in savings than calculators like firecalc or fidelitys RIP dictate..
TY BERNICKE as well as SUN LIFE did quite a few extensive studies in this area. well respected researcher and a favorite of mine , MICHAEL KITCES also looked in to this as well.
Not if they buy low fee index funds like many have learned to love and prosper from. Also there are many lower fee active funds from Vanguard, Fido etc. Just ask the many in this forum who have prospered from!
right again! this forum as well as many others are filled with folks who would agree with you tuborg.
you need a lot less than the old 4% rule ( which was never meant to be a rule ) dictates you do. the 4% safe withdrawal rate is based on inflation adjusting every year.
study after study concluded that retirees tend to spend in a smile shape .
they spend more early on in retirement going and doing things . then spending falls off a cliff. by 80 spending ramps up again because of healthcare ,gifting and chartable giving.
the end result is what you buy less of more than offsets the increases in what you stlll do buy making a lot less inflation adjusting needed.
this of course assumes not everything in your spending is a need. if there is nothing to cut back then you will need a lot more inflation adjusting.
home ownership and fixed rate mortgages cut the amount of inflation adjusting as well.
without figuring inflation adjusting every year 20-30% less capital may be needed in savings than calculators like firecalc or fidelitys RIP dictate..
TY BERNICKE as well as SUN LIFE did quite a few extensive studies in this area. well respected researcher and a favorite of mine , MICHAEL KITCES also looked in to this as well.
Just a darn minute here. I'm in my second (third? I forget) year of retirement, and I'm living it up with leaner times ( a cliff, no less) to come? Say it ain't so!
Readers of your post need to keep firmly in mind that one person's highlife is another's being able to afford the necessities and an occasional night out. You gave me a chill. Seems the bottom of my smile might mean Puss N Boots. Sure hope not.
Ha ha ha .. The good news is you likely need less than you thought.
But the reality is yes, most of us will not be doing nearly as much spending and traveling from 70-80 like we were from 62-70. not because we can't but because we just likely won't.
Ha ha ha .. The good news is you likely need less than you thought.
But the reality is yes, most of us will not be doing nearly as much spending and traveling from 70-80 like we were from 62-70. not because we can't but because we just likely won't.
I swear I'm gonna prove you wrong. I turn 70 a year from next week and Provence beckons.
Not if they buy low fee index funds like many have learned to love and prosper from. Also there are many lower fee active funds from Vanguard, Fido etc. Just ask the many in this forum who have prospered from!
I think being a single retiree often releases a person from needing to a do things that many couples seem to expect in retirement. So a single retiree often or sometimes expects less in retirement.
Being a couple can come with expectations to entertain each other and as a couple.
If being a single retiree releases us from needing to do things ... why would we expect less?
I do whatever I want - so I figure I have more
But the reality is yes, most of us will not be doing nearly as much spending and traveling from 70-80 like we were from 62-70. not because we can't but because we just likely won't.
Which is why I retired at 54 and why, two weeks shy of my 59th birthday, I am composing this reply while lounging poolside at a resort on Denarau Island in Fiji.
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