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Old Today, 02:11 PM
 
6,305 posts, read 4,746,934 times
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Quote:
Originally Posted by mathjak107 View Post
We expect to close this week on the last two co-ops we are selling ....we will get a decent lump sum but I have no need or desire to recalculate a draw ....the money is there if we want to spend it , we are free to use it any way we want or invest it ..but we have no reason to just recalculate and move the goal posts out .it is there for when we want it
That is true of all of your assets. You are free to spend or invest and you are not required to calculate anything or to set any financial or other goals.
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Old Today, 02:43 PM
 
71,735 posts, read 71,853,273 times
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Quote:
Originally Posted by jrkliny View Post
That is true of all of your assets. You are free to spend or invest and you are not required to calculate anything or to set any financial or other goals.
exactly ... once i set the base amount which is what our lifestyle is based on ,no matter how much we go up i have a choice ..since my draw is based on each years balance i can just add the lump sum in and recalculate the draw or just leave it in the account and spend it as we see fit .....
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Old Today, 02:44 PM
 
71,735 posts, read 71,853,273 times
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Quote:
Originally Posted by jrkliny View Post
According to Firecalc you have a 73% chance of your money lasting 30 years. There is even a lower probability that you will live that long. Not bad odds, but some people would want less risk.
yeah , i would not plan on 5% day one unless my plan was to reduce down later ... some lifestyle software does that . it gives you more early on but less later
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Old Today, 03:45 PM
 
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I love my work and wish to continue until I am no longer able. I WANT to leave behind an excess, so that the next generation can have a leg up and live wherever they'd like. I consider myself lucky I'm in a low CoL area and perfectly happy here. Do I simply designate a beneficiary to my 401(k), or is there a more astute way to transfer a remaining balance to an heir with less penalty?
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Old Today, 03:48 PM
 
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Quote:
Originally Posted by old today View Post
I retired at age 61 in 2009 right at the bottom of the stock market crash. My investment portfolio of an even mix of stock and bond funds had dropped around 25% but I decided to retire anyway and strictly follow the 4% rule. (I withdrew 4% of my starting portfolio number- about one million dollars- and increased it 2-3% each year to cover inflation.)

I am in good health and I want to increase my standard of living. Now that I am 10 years older and have twice as much money as I did in 2009, can't I start the 4% rule distributions all over again and start pulling out $80,000 a year from my investment accounts? What are the rules about this?
If most of the money is already made you can certainly take out some chunks or increase distributions. Obviously you want to consider health and responsibilities.

I've been an investor (and IRA) for 35 years - so I had a lot of time for things to compound. At this point I am retired but don't even need to take out that 4% - but I take some chunks anyway because I don't want to wait until the required distributions force me to.

Also, if we consider the US Economy in the long run - it's fact that tax rates SHOULD go up because the CBO clearly states what we are on an unsustainable path (deficit and debt). That would mean money taken (and tax paid on it) now should be cheaper than later (at 70.5 and later)...

FYI for those not doing the calls, the DOW has tripled in 10 years so if one was fully invested in 2009, they'd have 3 for 1.....

Of course, if they were invested for 20 years they would have much less (avg per year)....only about 5% compounded average.
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Old Today, 09:53 PM
 
Location: Montgomery County, PA
14,683 posts, read 9,733,469 times
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Quote:
Originally Posted by Frank Purlin View Post
Indeed you can. And you probably should do that, or something similar. I would.

As you know, the 4% rule is designed for your money to last 30 years. Restarting now will get you to age 100.

If you want to take a slightly more conservative approach since markets at at all time highs, just go with a 3.5% annual withdrawal, with annual inflation adjustments.

Congrats. You did a wonderful job building your portfolio and managing withdrawals in retirement.
It sounds a lot but when you do the numbers, it's really not. 4% of even $2mil is only $6600 a month. I am spending that much and have no mortgage or any other payments. Property tax and insurance can easily eat a $1000 month.
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Old Today, 11:01 PM
 
Location: On the road
5,963 posts, read 2,902,204 times
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Quote:
Originally Posted by craigiri View Post
Also, if we consider the US Economy in the long run - it's fact that tax rates SHOULD go up because the CBO clearly states what we are on an unsustainable path (deficit and debt). That would mean money taken (and tax paid on it) now should be cheaper than later (at 70.5 and later)...
It's often more about what tier that money falls into. Taking out an "extra" x amount today would be at your highest tier now, but fall into a lower (or 0%) tier in the future even if overall income tax rates are higher.
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