U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 08-28-2017, 08:16 AM
 
Location: SoCal
13,221 posts, read 6,320,879 times
Reputation: 9827

Advertisements

Quote:
Originally Posted by mathjak107 View Post
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 .
You can think of it as having a low AA. Instead of 50/50, it could be 45/55 or 48/52. Frankly I don't really know what my AA is either, just roughly, but not exactly.
Reply With Quote Quick reply to this message

 
Old 08-28-2017, 08:19 AM
 
Location: SoCal
13,221 posts, read 6,320,879 times
Reputation: 9827
Quote:
Originally Posted by mathjak107 View Post
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 .
I think we all plan our life differently. We all spend our money differently. I don't always spend everything up until 4% every year. Some year, If I don't have to spend and I don't spend.
Reply With Quote Quick reply to this message
 
Old 08-28-2017, 08:19 AM
 
71,519 posts, read 71,694,121 times
Reputation: 49105
anything over 40% equity has had a 90% or better success rate . the difference between higher allocations has been the balance left at the end assuming no raises as in a laboratory controlled test .

i am 46% equities at the moment but will go up to 50/50 or even 60/40 if valuations come down enough . .
Reply With Quote Quick reply to this message
 
Old 08-28-2017, 08:20 AM
 
Location: SoCal
13,221 posts, read 6,320,879 times
Reputation: 9827
Quote:
Originally Posted by dcfas View Post
Curious how converting to a Roth figures in to 4% (4.5%) rule. Only the taxes paid count in?
I think of tax as part of spending.
Reply With Quote Quick reply to this message
 
Old 08-28-2017, 08:23 AM
 
71,519 posts, read 71,694,121 times
Reputation: 49105
Quote:
Originally Posted by NewbieHere View Post
I think we all plan our life differently. We all spend our money differently. I don't always spend everything up until 4% every year. Some year, If I don't have to spend and I don't spend.
i doubt anyone lives on a constant 4% . we came in under the last 2 years but this year we are over since we bought a new car , needed 15k for my wife's dental and we booked a cruise to cuba .

but things like the car and dental are not going to be yearly expenses . but we do set goal posts to stay within each year . i can easily over spend if i have no idea where i stand .we love travel and our toys like photography gear .
Reply With Quote Quick reply to this message
 
Old 08-28-2017, 11:00 AM
 
Location: Upstate, NY
607 posts, read 260,726 times
Reputation: 753
We have nine years yet to retirement. These CD boards caught my eye and have me planning in ways that many folks don't think about until much closer to their retirement dates. At this point 4% of our projected savings would only scratch the surface of what we currently need, which is closer to four times that figure. Fortunately, we both will have pensions and (hopefully) SS, and will likely need considerably less as we will no longer be in the accumulation phase. One thing that will be costly is our plan to winter in warmer climbs. That alone could cost us one third of 4%. We both max a Roth presently, and will convert our deferred account each year after retirement and up to 70.5, keeping mindful of the tax brackets.

There seems an awful lot to keep your eye on. No wonder so many folks are ill prepared.
Reply With Quote Quick reply to this message
 
Old 08-28-2017, 11:09 AM
 
Location: Middle of the ocean
31,630 posts, read 19,955,234 times
Reputation: 45705
We will happily spend the hell out our 401(k) once we are eligible. Our goal is to live off of the pensions, and SS and use the 401(k) for travel and toys.

I am pretty confidant that I want to spend heavier in beginning while we are young (I say stuff like that and then cannot let go and actually do it. )

I lost my first husband at 43, and he never got to enjoy what he saved, I don't want that to happen twice!!
__________________
____________________________________________
My posts as a Mod will always be in red.
Be sure to review Terms of Service: TOS
And check this out: FAQ
Moderator: Relationships Forum / Hawaii Forum / Dogs
Reply With Quote Quick reply to this message
 
Old 08-28-2017, 11:20 AM
 
71,519 posts, read 71,694,121 times
Reputation: 49105
Quote:
Originally Posted by dcfas View Post
We have nine years yet to retirement. These CD boards caught my eye and have me planning in ways that many folks don't think about until much closer to their retirement dates. At this point 4% of our projected savings would only scratch the surface of what we currently need, which is closer to four times that figure. Fortunately, we both will have pensions and (hopefully) SS, and will likely need considerably less as we will no longer be in the accumulation phase. One thing that will be costly is our plan to winter in warmer climbs. That alone could cost us one third of 4%. We both max a Roth presently, and will convert our deferred account each year after retirement and up to 70.5, keeping mindful of the tax brackets.

There seems an awful lot to keep your eye on. No wonder so many folks are ill prepared.
don't forget the 4% draw rate applies to what you need after subtracting out pensions ,social security , annuities and rental income .
Reply With Quote Quick reply to this message
 
Old 08-28-2017, 11:23 AM
 
Location: SoCal
13,221 posts, read 6,320,879 times
Reputation: 9827
Quote:
Originally Posted by Mikala43 View Post
We will happily spend the hell out our 401(k) once we are eligible. Our goal is to live off of the pensions, and SS and use the 401(k) for travel and toys.

I am pretty confidant that I want to spend heavier in beginning while we are young (I say stuff like that and then cannot let go and actually do it. )

I lost my first husband at 43, and he never got to enjoy what he saved, I don't want that to happen twice!!
I'll be glad to spend 10% for next 5-10 years. But like I wrote, I enjoy my travel but I have not stayed at a $700 a night hotel yet, like I could in Banff. I stayed at a hotel in the $200-$300 range. My husband and I still had a good time.
Reply With Quote Quick reply to this message
 
Old 08-28-2017, 11:27 AM
 
Location: Middle of the ocean
31,630 posts, read 19,955,234 times
Reputation: 45705
Quote:
Originally Posted by NewbieHere View Post
I'll be glad to spend 10% for next 5-10 years. But like I wrote, I enjoy my travel but I have not stayed at a $700 a night hotel yet, like I could in Banff. I stayed at a hotel in the $200-$300 range. My husband and I still had a good time.

Agree. I don't plan paying more than I should for stuff!!! I never understood expensive hotel rooms, I'm never in them except to shower and sleep.
__________________
____________________________________________
My posts as a Mod will always be in red.
Be sure to review Terms of Service: TOS
And check this out: FAQ
Moderator: Relationships Forum / Hawaii Forum / Dogs
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top