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Old 08-27-2017, 07:40 PM
 
Location: Florida
4,358 posts, read 3,694,371 times
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Quote:
Originally Posted by NewbieHere View Post
Luckily, it's still under 4%, maybe even 3.5% or even less. I can always cut back. I've done it before. Right now I have no restriction and it still good.
I understand your point. Their is no need for you to worry about the rules because you are following them and you did not even have to know that they exist.
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Old 08-27-2017, 08:55 PM
 
Location: Middle of the ocean
31,613 posts, read 19,947,296 times
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Quote:
Originally Posted by NewbieHere View Post
Mathjak, it's not all about money.

But the thread is, right?
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Old 08-27-2017, 10:02 PM
 
Location: SoCal
13,203 posts, read 6,313,926 times
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Quote:
Originally Posted by Mikala43 View Post
But the thread is, right?
Not about the thread. It's about maximize returns.

Last edited by NewbieHere; 08-27-2017 at 10:50 PM..
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Old 08-27-2017, 10:03 PM
 
Location: SoCal
13,203 posts, read 6,313,926 times
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Quote:
Originally Posted by rjm1cc View Post
I understand your point. Their is no need for you to worry about the rules because you are following them and you did not even have to know that they exist.
I didn't know that I did. I just calculated it recently. But I had earmark these buckets of money to spend for my travelling and they seem to be within the 4%, so it was not a conscious decision. I just spend what I need, no restrictions, luckily it was within 4%. I had budgeted 5 years of high spending after I retire, when my husband and I are still young enough to travel, with no regards to 4% SWR. It could be 7% and I still do it. But I do get SS at age 70, extra source of income that I didn't include in my retirement planning when I started in 2011.

Last edited by NewbieHere; 08-27-2017 at 10:53 PM..
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Old 08-27-2017, 10:21 PM
Status: "Re-edit status" (set 14 days ago)
 
Location: Was Midvalley Oregon; Now Eastside Seattle area
4,148 posts, read 1,890,030 times
Reputation: 3167
We will have enough with SS, small pension, and deferred GLWB annuities. Discretionary accts will be the Inflation buffer. I am not including other assets as home and highly appreciated RE.

A retiree only worries about their SWR, if they are solely dependent on highly variable retirement assets. A lesson learned twice from the dotcomm-9/11 and Great Recession events.
We moved away from variable stock/bond/MF/Indexes in favor of annuities and RE rentals.
YMMV
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Old 08-28-2017, 02:54 AM
 
71,501 posts, read 71,674,131 times
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inflation is the boggie man that can be even more of a sequence risk to income like annuities.

spending down during periods of negative real return years with even inflation adjusted annuities has sequence risk .

no inflation adjusted annuity tracks someone's personal rate of inflation and it does not provide extra at times for unexpected emergency spending and unexpected expenses the way market investments do .

inflation is what killed off the 2 worst retiree groups , not markets . 1965/1966 were done in by inflation .

so you need to use annuity products with rentals , or market investments even if they are inflation adjusted ones . of course rentals have sequence risk as well so you never are out of the water .

rentals go vacant , rentals in area's can take months to evict and rents can fall . i had that happen right here in nyc after the crash in 1987 .

so sequence risk never really is out of the picture
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Old 08-28-2017, 03:02 AM
 
71,501 posts, read 71,674,131 times
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Quote:
Originally Posted by NewbieHere View Post
I didn't know that I did. I just calculated it recently. But I had earmark these buckets of money to spend for my travelling and they seem to be within the 4%, so it was not a conscious decision. I just spend what I need, no restrictions, luckily it was within 4%. I had budgeted 5 years of high spending after I retire, when my husband and I are still young enough to travel, with no regards to 4% SWR. It could be 7% and I still do it. But I do get SS at age 70, extra source of income that I didn't include in my retirement planning when I started in 2011.
good planners today let you do lifestyle planning . they will actually calculate for a moving curve giving someone more money up front and less in later years . or they will work around big expenditures in the plan down the road .

no one spends like a robot . in fact as i mentioned many times very few who delay ss and retire DON'T include the future ss in their early spending years . in fact to me i never saw the logic in calling ss down the road "extra money "

the idea of delaying is not to spin the wheel of life as to your longevity . it is to shift the composition of your income down the road to 70% less your own money from investments .

but the budget should be the budget day 1 where you can enjoy that ss money delaying or not . whatever your retirement income is , it should be that way day 1 in my opinion . i certainly would not want to wait until 70 to first plan on using a guaranteed future income stream i had .

it makes as little sense to me as buying a longevity annuity to kick in at age 85 but planning your portfolio budget as if it had to support you to 95 when the longevity annuity was bought to do that if you lived that long .
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Old 08-28-2017, 03:32 AM
 
71,501 posts, read 71,674,131 times
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Quote:
Originally Posted by NewbieHere View Post
Not about the thread. It's about maximize returns.
except that whether to use cash buffers or draw from the pie directly is not about maximizing return .

risk is the same in both cases . you are still working with the same maximum allocation using systematic draw from the pie . it only eliminates cash and uses the pie instead .

it adds no more risk but has been shown to actually work better than maintaining the cash under a wider variety of outcomes .

i just find i am more comfortable and have a better handle on things by keeping a year in cash for spending down now and a reserve of a year .

this year we ended up needing 15k from the reserve for my wifes teeth and we just pre-ordered a new car , cash . so it came in handy and we did not have to sell anything yet .

comes january we will re-fill . but since i will now have ss coming in we no longer need to hold so much cash .
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Old 08-28-2017, 06:57 AM
 
Location: Upstate, NY
604 posts, read 260,273 times
Reputation: 753
Curious how converting to a Roth figures in to 4% (4.5%) rule. Only the taxes paid count in?
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Old 08-28-2017, 07:28 AM
 
71,501 posts, read 71,674,131 times
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yes . it i like i set goal posts of about 4% of each years current balance but it includes taxes in that figure. if i converted my balance is less but taxes are partially inclusive then .
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