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I have a home in Dallas and San Antonio plus I've lived in Chicago for a few yrs. The property taxes are high in all places but my SA home is half of what I pay in Dallas due to the value of the home. SA is significant scale back on the home front. I can't imagine paying anywhere close to $800 per month for Water, electric, gas (no gas), cable, phone. I could be wrong but I bet I'm not paying much more than that on two homes now.
I have a home in Dallas and San Antonio plus I've lived in Chicago for a few yrs. The property taxes are high in all places but my SA home is half of what I pay in Dallas due to the value of the home. SA is significant scale back on the home front. I can't imagine paying anywhere close to $800 per month for Water, electric, gas (no gas), cable, phone. I could be wrong but I bet I'm not paying much more than that on two homes now.
electric for us averages 300 during the summer. Thank goodness that is almost over. The AC isn't kicking off very much today.
Water which includes garbage runs about 120 during the summer. Gas is low during the summer but goes up during the winter since we have a gas furnace.
Directv is 150 or so - we have all the channels. Internet for the house - 50 or so. Then our individual cell phones plus my mobile Wi-Fi. I hate to be without service when we have a power outage - and that can occur during the thunderstorms we have here.
Well in a few yrs (2019) I'd like to retire and utilize my 401k with the age of 55 rule. With that I tried to validate my plan with a couple (3) retirement planning firms. Not sure where the 70-80% replacement of your current salary comes from but in my case it would never happen. Nor do I believe that I need it but is that really viable? Sorry probably more of a rant than a question.
Currently own two homes
Call it 1 mil in 401k
Selling primary home that will net 500k
150k on second home but other than that debt free
Need about 70,000 per yr in retirement
In the end about 1.6mil but need to deal with the retirement home in San Antonio (150k). 500k in cash.
So two of the three firms say I need more to retire at 54. Doing it anyway . Or yeah Married.
Rant over.
Just using the standard 4% rule for withdrawals, this doesn't pass.
4% of $1.4M is $56,000 per year, not the 70K you want. Either you need to keep working or scale back your lifestyle to 56K. Yes, I know Social Security can kick in at 62, but that can be a long 8 years if you're not prepared.
you forgot his social security that kicks in 13 years after he retires . he is in okay shape with ss. you don't change your draw when ss kicks in . no one who delays ss waits until 70 to spend more . rather you find a safe withdrawal rate that figures you laying out more than 4% while waiting for ss than falls to a lower level once ss kicks in . the difference in check delaying refills the money laid out.
calculators like firecalc or fidelity compute that .
firecalc looked at him drawing 70k day 1 . it then figured increases by inflation and looked at ss kicking in at 67 ,13 years later . all the while stress testing the combo
Last edited by mathjak107; 10-11-2016 at 01:41 PM..
no , roi is never figured in . retirement portfolio's are stress tested using the worst case scenario data either that exists or that monte carlo simulations can come up with .
it is never stress tested against averages or a specific return .
all a safe withdrawal rate is based on is how your plan would have done getting through the nastiest retirement time frames.
that is if you retired with a starting date in 1907,1929,1937 or 1965/1966 . no retirees in this country saw worse conditions . if your plan did not go bust and run out of money through anyone of those time frames than that is a 100% success rate . you can fail a few dates and still be okay but i would not like to see less than 90% as the lowest success rate
gotcha. Its a part of the analysis I had but really all assumption. No one knows the future but they did some guidance base on historical performance. Still was close all cases. Obviousely a 4% strategy isn't for me based on the assumptions above.
boy i wish we could live the way we desire on just 70k here in queens ,nyc .
You can actually live WAY cheaper than that in San Antonio. 70k is a darn good income here especially if you have no mortgage or debts. We actually calculated that we could live pretty comfy on 50k with the house paid off and no other debt.
Yeah, that "works just fine" for anyone who wants to live in the middle of a forest, produce 90% of their own food, and live off-grid for the most part.
I'm glad that works great for you, but it is disingenuous, if not downright dishonest, to suggest to others who come here seeking retirement advice that living on less than 30% of one's working income works just fine without mentioning exactly how you accomplish that feat.
I think it depends upon what their household income was pre-retirement. 30% of our household income would work great for us in retirement. House is paid off and we have no other debt.
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. Or yeah Married.
