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I enjoy reading the posts on the various investment and retirement boards. But I find most posters live in their own little world.
A common thing is for the retired folks to brag to anyone who will listen how conservative they are in their retirement fund withdrawals. They are absolutely convinced that withdrawing 4% inflation adjusted per years is so 20th Century. They brag about how conservative they are and only pull out 2% a year. ( 2% is the new 4%)
Don't they know that they won't have as high of standard of living in retirement and will likely die with most of their retirement money sitting in their account?
Well, don't YOU know that not everyone is the same? Perhaps some people can have exactly the standard of living they wish by withdrawing the 2% per year. And perhaps those people also like the idea of leaving more than a negligible amount to their children and/or to their favorite charities.
There is nothing wrong with the goal of dying with little or nothing left, but there is something wrong with trying to force everyone into the same mold.
You got me thinking . . . if we drain our 401(K) funds dry within 15 years of retiring we'll have no debts and regular income that will cover living expenses with a moderate amount left. I guess we'll just have to make those 15 years fun.
I enjoy reading the posts on the various investment and retirement boards. But I find most posters live in their own little world.
A common thing is for the retired folks to brag to anyone who will listen how conservative they are in their retirement fund withdrawals. They are absolutely convinced that withdrawing 4% inflation adjusted per years is so 20th Century. They brag about how conservative they are and only pull out 2% a year. ( 2% is the new 4%)
Don't they know that they won't have as high of standard of living in retirement and will likely die with most of their retirement money sitting in their account?
do you know what they are getting in pension , social security or other income ?
we are drawing 3.50% now pre fra but once i take social security we will drop in to the 2.00% range .
if someone has a decent pension they may need even less . my buddy and his wife get 75k as retired board of ed teacher's
I plan on rolling my TSP over into an IRA after I retire. Not touching it until I have to.
Can I ask why you are going to roll it over? Would it possibly be better to leave it in the TSP to take advantage of their low management fees? I know the TSP has specific, and from what I understand, more limited withdrawal options than a 401K, but if you are not going to touch it for an indefinite period, would it not be better to just leave the funds there?
I enjoy reading the posts on the various investment and retirement boards. But I find most posters live in their own little world.
A common thing is for the retired folks to brag to anyone who will listen how conservative they are in their retirement fund withdrawals. They are absolutely convinced that withdrawing 4% inflation adjusted per years is so 20th Century. They brag about how conservative they are and only pull out 2% a year. ( 2% is the new 4%)
Don't they know that they won't have as high of standard of living in retirement and will likely die with most of their retirement money sitting in their account?
Many/most of them do know.
If is was as certain as you are, I might withdraw more. I'd love to 'die broke' - but it's not really possible.
Do you know how long a retirement 'those people' are planning on? If it's 40 years, a 4% inflation adjusted WR is riskier.
Having 5 years expenses left when you die is easier to handle than living 5 years longer than you planned, but you're welcome to choose the latter - but don't expect others to bail you out.
If those other people are spending as much or more than they did before retiring with withdrawals of 2%, anything wrong with that? Some people don't want or need more, and they've planned accordingly. Why does it bother you that they might leave money?
And if they want to leave a large sum of money to family, friends and/or charities, isn't that their choice?
It's the ones who are withdrawing (much) more than SWR, without any plan I worry about...
Spend it all and there is nothing left for the children. That's not right.
Life is only going to get worse for them
Ha! I have a friend who says she is not leaving a dime to her kids. She has put them through school to masters level, one Law school, all are 35yr and older. She said enough!!!
But I can see if someone has much younger children, things could be much different for them.
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