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Old 03-07-2017, 10:54 AM
 
519 posts, read 579,375 times
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Quote:
Originally Posted by mathjak107 View Post
again , then they are not part of what we are saying about safe withdrawal rates . the same as someone who has a pension that meets all there spending needs does not NEED money from the portfolio. they do not take a "DRAW RATE " they just pull what they want .

not the same situation as when delaying social security as an integral part of the draw amount that is "needed "
I agree, which was the point of my initial comment to you. Not all need look at SS as replenishing early higher SWR. Most, but not all.
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Old 03-07-2017, 11:14 AM
 
77,811 posts, read 59,974,535 times
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Quote:
Originally Posted by Yes I know View Post
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?
My parents didn't touch their 401k until forced to by the govt. rules. Then again they live very frugally and had a nice solid pension, house paid off etc.

To each their own.

In my family, the grandparents help with college for the grandkids and leave nice inheritances.

Me personally, I will feel like I have failed to "pay it forward" if I don't do the same.

So I will be living below a level I could be at in order to do that and that's my personal choice.

Do what you do, live your own life. As long as someone isn't mocking your decisions then let them do their thing and you do yours.
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Old 03-07-2017, 11:41 AM
 
519 posts, read 579,375 times
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Quote:
Originally Posted by Mathguy View Post
Do what you do, live your own life. As long as someone isn't mocking your decisions then let them do their thing and you do yours.
What I find most fascinating about this discussion is how many are happy to leave funds to the next generation, but about inheriting monies from their own parents are saddened that their own parents didn't spend more of their money to enjoy life.

At least that was the bitter sweet feeling I had at inheriting from my own parents.
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Old 03-07-2017, 12:15 PM
 
105,919 posts, read 107,880,197 times
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just pulling the standard 4% inflation adjusted draw has left you with more than you started 90% of every rolling 30 year time frame since 1926 . 67% of the time it left you with 2x more .

so unless you step up draws under anything but worse case there will be quite a bit left .
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Old 03-07-2017, 12:30 PM
 
Location: RVA
2,766 posts, read 2,068,738 times
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My own mother made it a point to apologize before she died, that she was leaving less to each of us, than her own father left to her and siblings. She would have been broke in a year or two had she kept living, so any amount was a surprise. I tell my dad to worry about himself, not some stupid inheritance. He has it in his mind that he owes us something because he was a "bad" father. He wasn't bad, just had no idea how to raise kids, work, and handle his own demons at the same time. My grandparents on both sides could have cared less whether they left anything to their heirs. They all acted like they wanted to take it with them. What was left was really leftovers from their costs of living. My grandmother prepaid an immense funeral and mass arrangements for herself, far nicer than she spent on her husband that had died maybe 7 years earlier. Yet she never went to mass. We thought it humorous, and telling. While not nasty people, they were never charitable. Self centered, and miserly, for no real reason except to accumulate wealth. They were aloof. They left a very tidy sum to my dad and aunt.

While I wouldn't mind leaving more to relatives, unless I know it will go to good (instead of parties. drugs and drink), I'd rather leave more to charities for animals. I don't think any of mine or DWs offspring, nieces & nephews know the meaning of hard work for a days pay, or living below their means.
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Old 03-07-2017, 12:46 PM
 
519 posts, read 579,375 times
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Quote:
Originally Posted by Perryinva View Post
I tell my dad to worry about himself, not some stupid inheritance. He has it in his mind that he owes us something because he was a "bad" father. He wasn't bad, just had no idea how to raise kids, work, and handle his own demons at the same time.
As you say, not bad; and, I'd go further and say you father is just like nearly everyone else that ever graced the planet.
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Old 03-07-2017, 12:57 PM
 
Location: RVA
2,766 posts, read 2,068,738 times
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Quote:
Originally Posted by larsm View Post
I agree, which was the point of my initial comment to you. Not all need look at SS as replenishing early higher SWR. Most, but not all.
Agreed. There is just no way to accurately predict at what rate the SS will replenish the savings. In 65% of scenrios, it replenishes. In many it means savings stays level. In others it just reduces at a much slower rate allowing it to last until you die. But in the end, I chose a "burn rate" based on planning. Until I am living the retirement and KNOW what the actual burn rate is, then it's all assumptions and planning.

It's my actual feeling that most people that have the funds to plan like this, are too conservative and assume a higher burn rate just in case. But I am too fearful of being wrong to call it quits now, when a very few more years makes it a certainty. My category for "Miscellaneous/other" is my largest single category by far. If my Fidelity Readiness plot shows being short $2000 a year starting age 92, I don't care. That still leaves me way above the inflation adjusted essential expense line.

An SWR that includes all essential expenses is far different from an SWR that is only for discretionary, or even one that covers all expenses and much discretionary. Options!, as Mathjack says.
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Old 03-07-2017, 02:33 PM
 
182 posts, read 195,655 times
Reputation: 272
Quote:
Originally Posted by TwoByFour View Post
I am not sure about that. I have all our retirement money at Schwab, where I manage it myself. It is 98% invested and they do not make any money off that; there is no annual fee for Schwab to be the custodian. Perhaps they make some money off the 2-3% cash we have. I think they hope I will use some of their services that cost money, but trading fees is about it, and I only execute maybe 10 trades per year.

As to recommending a low withdrawal rate - that is pretty universal and does not come just from brokers like Schwab. You can go to independent retirement web sites, like FIRE and use their income planning tools and get the same result.
Well, that's just silly. Obviously, they make money from your investing your money with them; they are running a money-making enterprise.
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Old 03-07-2017, 02:39 PM
 
Location: Central Massachusetts
6,533 posts, read 7,015,373 times
Reputation: 9273
Quote:
Originally Posted by cathedralhill1 View Post
Well, that's just silly. Obviously, they make money from your investing your money with them; they are running a money-making enterprise.
I agree with you. Some here insist that they pay no fees what-so-ever for their investments. Like you I find that point impossible to believe.
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Old 03-07-2017, 02:51 PM
 
Location: Haiku
7,132 posts, read 4,735,351 times
Reputation: 10327
Quote:
Originally Posted by oldsoldier1976 View Post
I agree with you. Some here insist that they pay no fees what-so-ever for their investments. Like you I find that point impossible to believe.
So please elaborate on this. I am curious what you think is going on. Now, I did say that they make money off my trades, all 10 or so every year. But other than that there is no payments by me to Schwab. So tell me what I am missing.
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