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Old 07-26-2019, 06:46 PM
 
29 posts, read 25,576 times
Reputation: 54

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Quote:
Originally Posted by ElmersGlue. View Post
I don't get this needing 1.7 Million for most to retire

We exist on $2415 a month easily but could exist on $1915 a mo. which is our combined SS.
I still save about 50% of my earnings each mo. with my dream job (two 12 hr shifts at min wage)
Subtract SS from your retirement planning and you'd need in the neighborhood of a million in active investments to safely withdraw 2k/month. 1.7 million isn't that far-fetched.
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Old 07-26-2019, 07:04 PM
 
1,801 posts, read 1,231,925 times
Reputation: 3606
Quote:
Originally Posted by mathjak107 View Post
Ha ha ha , that’s funny ... I can’t get to geeky .... I am ramping up my drumming career again .. I don’t want to be a geeky drummer
Just keep an extra set of drumsticks ready in case you find yourself in a situation where you have to “beat ‘em off with a stick” as we used to say. ;-)
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Old 07-27-2019, 01:56 AM
 
106,148 posts, read 108,118,136 times
Reputation: 79692
Quote:
Originally Posted by SOON2BNSURPRISE View Post
How many people do you know that receive a pension?
many i know do but most are not big enough to live on in this area .. almost all city , state and local workers get some form of pension .

my wife gets her deceased husbands pension since he was a city worker and that is less then 1/2 of what we get from social security
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Old 07-27-2019, 02:06 AM
 
106,148 posts, read 108,118,136 times
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Quote:
Originally Posted by TuborgP View Post
That is your equity/bond allocation. I mean that within your equity allocation you have tampered down volatility and are not in the Growth portfolio.
at times i do use the growth model too . you can allocate more money to the income model that way because unlike the growth and income model which is 60/40 the growth model is 100% equity so the portfolio needs less of an allocation to it .

i do like the growth and income model the last year which is more like the income model and a bit more conservative in fund choices but one can mix it up any way they like .

the income model is 1/3 the volatility of the s&p 500 , the growth and income model is 2/3 as volatile as the s&p 500 and the growth model is just a hair more volatile then the s&p 500 .

so you can create some interesting combo's by allocating different ratio's of money to the different models . the nice thing is no matter how interesting or complex i make the combo's it is a piece of cake for my wife to step in and just keep things going ... no more then 15 seconds a week needed if that much to portfolio maintenance just to read the update each week .

so the income model provides us with short and intermediate term money --up 9.74% ytd , the growth and income model is our long term money and back up intermediate term money - up 15.52% ytd ... although i currently don't use them , the growth model is up 23.39 ytd and the sector model is up 24.55% ytd

Last edited by mathjak107; 07-27-2019 at 02:16 AM..
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Old 07-27-2019, 04:36 AM
 
19,387 posts, read 6,467,453 times
Reputation: 12310
Quote:
Originally Posted by covener View Post
Subtract SS from your retirement planning and you'd need in the neighborhood of a million in active investments to safely withdraw 2k/month. 1.7 million isn't that far-fetched.
But WHY should he subtract SS from the plan? That's a inflation-protected, lifetime annuity.

Let's say that I need $4,000 a month in retirement, $2,500 of which comes from SS. I can make up the remaining $1,500 with a SWR of 4% from a $450,000 portfolio.
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Old 07-27-2019, 04:50 AM
 
106,148 posts, read 108,118,136 times
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you are not actually subtracting it totally . in other words , if you need 60k a year in total income and 20k is from social security you have a gap of 40k to fill ... 40k with at least 40% equities takes 1 million in a portfolio to fill .

if you are not going to be using equities and only are using fixed income you can't draw 4% safely out of that portfolio so you will need more than 1 million to safely generate the shortfall , about 1.40 million to get 40k

it also means that under worst case outcomes you can still be alive in year 30 and have just 40k in inflation adjusted dollars left and have a successful retirement as far as the success rate goes even though you could be broke if you live an extra year .

this is why the allocation you use is so important as well as actually having a real time dynamic strategy that responds to how your time frame is playing out along the way.

Last edited by mathjak107; 07-27-2019 at 05:07 AM..
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Old 07-27-2019, 06:24 AM
 
4,149 posts, read 3,883,249 times
Reputation: 10932
Quote:
Originally Posted by mathjak107 View Post
f you read what i wrote it wasn't an inheritance ... it was supposed to be but the documents were defective and we ended up buying out the step children and selling the business. we would have had way more regardless , that was 16 years ago ago , markets doubled including 2008..had i not had to buy out the business i would have stayed in the 100% equity growth model and we would not have planned to retire so early initially . i had just gotten divorced a few years prior so ex got half .
I am curious why you even mentioned your future wife's 700K in the article if it really wasn't part of the financial equation
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Old 07-27-2019, 07:02 AM
 
106,148 posts, read 108,118,136 times
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Quote:
Originally Posted by jasperhobbs View Post
I am curious why you even mentioned your future wife's 700K in the article if it really wasn't part of the financial equation
future wife ?

we were married when we did that article , she was my wife . ... we were married in 2005 but lived together for quite a few years prior .

we had already sold the business and it was all part of the plan ... but when we explained the complex situation they wrote it up as an inheritance but it really involved me and her buying out the estranged step children in what should have been an inherited business . so we bought it and sold it since i knew nothing about construction and we did not want to be in that business but we knew we could sell it for more then the buyout was . . ..we did not see the article or the photo until it came out .

my wife wasn't thrilled with the photo but we had no say .

this was a perfect example of what can happen when people try to save money on wills and trusts . my wife's father inlaw never saw his intentions carried out , the wrong people ended up laying claim because legally they now had a loophole , even though it was specified they were to get nothing and it cost us a lot of unnecessary money to deal with both the buyout and the lawyers to handle this fiasco . the worst part is my wife may not have been not entitled to anything the way it worked out since there were no provisions for her husband predeceasing his parents .

without him actually inheriting anything first there was nothing for her to get . he had passed away before his parents with no provisions for what happens after his parents died as far as his wife and kids sharing in the estate if he was already deceased , which is what happened . ..

what made this so confusing is the father inlaws paper work was missing the sentence pertaining to predeceasing . it also specified the estranged step children get nothing ... but my wifes husbands will called for sharing everything equally with all his children .

so the judge's advice was for us to try to buy out the step kids because if he ruled against us she would get nothing and the step children would be next in line .

but because the judge could have ruled in favor of my wife as well and ruled out the step children , it gave us bargaining power with the estranged kids since they shared the same risk of getting nothing we did if the case ruled against them .

so a negotiated buyout was in both our best interest instead of leaving it to the judges final decision . legal fees alone cost us 100k this was so complicated ..

just one missing sentence caused all this to happen .

Last edited by mathjak107; 07-27-2019 at 07:49 AM..
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Old 07-27-2019, 07:11 AM
 
Location: SoCal
20,160 posts, read 12,698,838 times
Reputation: 16993
Quote:
Originally Posted by Rachel976 View Post
But WHY should he subtract SS from the plan? That's a inflation-protected, lifetime annuity.

Let's say that I need $4,000 a month in retirement, $2,500 of which comes from SS. I can make up the remaining $1,500 with a SWR of 4% from a $450,000 portfolio.
In effect you did subtract SS to come up with the portion you need.
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Old 07-27-2019, 08:31 AM
 
Location: Living on the Coast in Oxnard CA
16,289 posts, read 32,254,549 times
Reputation: 21890
Quote:
Originally Posted by TuborgP View Post
In my case everyone my wife and I worked with along with many neighbors and friends. People with pensions usually know a lot of others with them especially in areas like the DC metro area.
I just recently spoke with a rep from a CCRC on the phone. They operated with a monthly fee instead of a buy in and she said that many of the residents there had pensions.
Many transplants to popular destinations have them also.
I don't know anyone other than those that work for the Government that have a pension. Not a single business that I know offers them.
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