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Old 12-12-2009, 05:02 PM
 
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if you planned correctly going into the years before retirement you shouldnt be "spending depressed assets" in fact if you didnt plan this all ahead of time it would be financial suicide to retire at that point and spend depressed assets.


good pre-retirement planning is setting up years of withdrawls well in advance when markets are up.. we started doing the pre-setup work probley 4 years ago, we are retiring in about 15 months .... we have 15 years of withdrawls in place in bonds,cash,money markets etc. before the first equity fund has to be sold.


anyone who retired right at the downturn in the 70;s and had to liquidate stock to pull 4% a year withdrawl to live on would have been broke only 17 years later.
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Old 01-07-2010, 08:09 PM
 
Location: Near a river
16,042 posts, read 18,975,704 times
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Originally Posted by Curmudgeon View Post
My goodness. I actually did it right. I retired in December of 2008. Had I remained on the job into 2009 I would have lost 14% of my income to furloughs. We bought our retirement home at the bottom of the market. Life has been good ever since! But most of all, I was tired of the rat-race, tired of working and needed to take back complete control of my life (or as much as my wife allows me to ).
Blue Eye, Missouri! What a fabulous name for a place. How did it get that name and what is the town like? Are you in tornado land? Where did you move from and do you like it there, as a retiree??
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Old 01-07-2010, 08:50 PM
 
174 posts, read 327,707 times
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Originally Posted by jghorton View Post
Not sure about the logic that retiring early in bleak times -- will make future retirement conditions better when markets improve. The missing point is that retiring when markets are depressed, means one must spend depressed resources -- that will no longer be available to appreciate when/as markets improve.

The cost of living doesn't really decrease/change in a depressed economy (except, perhaps for sale pricing on purchases). Therefore, early retirement in depressed economic times may indefinitely lower one's standard of living. About the only possible advantage of early retirement in a bleak market, may be the creation of a job for someone else(?).
I agree, when you retire at the low end there's is only one direction for the price of thing go , up! Now you lock your income in, and thing are going to get more costly as time goes on. This is going to make you purchasing power weeker. If your lucky you might have a cost of living built in to your pension.
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Old 01-07-2010, 08:56 PM
 
29,779 posts, read 34,867,277 times
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Originally Posted by jghorton View Post
Not sure about the logic that retiring early in bleak times -- will make future retirement conditions better when markets improve. The missing point is that retiring when markets are depressed, means one must spend depressed resources -- that will no longer be available to appreciate when/as markets improve.

The cost of living doesn't really decrease/change in a depressed economy (except, perhaps for sale pricing on purchases). Therefore, early retirement in depressed economic times may indefinitely lower one's standard of living. About the only possible advantage of early retirement in a bleak market, may be the creation of a job for someone else(?).
Not necessarily true. Depends on your circumstance. Because of the market downturn we wouldn't/didn't touch our investment money. We were fortunate to each have excellent pensions and lived quite well on those. We sold our house became transplants and paid cash for a new one. My wife is about to collect SS and that will all be invested and I will take at 70 with spousal benefits at 66. We have lived a good life on our pensions and are on track to invest SS for the known future and will only draw down tax sheltered investments when we need to and will still be building other investments/savings. The recession gave us a context of caution and we are getting close to being back at October 2007 levels.
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Old 01-09-2010, 10:39 PM
 
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I know quite a few who reired as the present recsssionmade changes liely. Most where in system that payout the retirement when they retired tho into a separate account not run by the employer.
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