Lots of posters like to brag they only withdraw 2% of their portfolio in retirement! (states, friends)
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Sequences of risk is something I've yet to experience, but after hearing from mathjak, I have lots of anxiety about. That's it, the bag lady syndrome, the more I think about it.
Both my Dad and the people who only withdraw 2% a year are dumb because, you should spend the money now, you can't take it with you in death.
No, but I can leave it to others who will make very good use of it.
Are people who donate to charity dumb because they are choosing to actually give some of their money away rather than spending 100% of it on themselves? If yes, well, I'm happy to be dumb!
I enjoy reading the posts on the various investment and retirement boards. But I find most posters live in their own little world.
A common thing is for the retired folks to brag to anyone who will listen how conservative they are in their retirement fund withdrawals. They are absolutely convinced that withdrawing 4% inflation adjusted per years is so 20th Century. They brag about how conservative they are and only pull out 2% a year. ( 2% is the new 4%)
Don't they know that they won't have as high of standard of living in retirement and will likely die with most of their retirement money sitting in their account?
I am one of the fortunate ones that only has to draw 2%. It nets me $16.70 month extra income.
Sequences of risk is something I've yet to experience, but after hearing from mathjak, I have lots of anxiety about. That's it, the bag lady syndrome, the more I think about it.
for i while i thought i was going to be the poster boy for it .
first year in retirement we got 1% returns and last year january and feb opened up horiible ..
I can only speak for myself. I have no urge nor need to leave anything to anyone so it is all about me...me...me. I have a life style I like and I deny myself nothing but yet all within reason. As I was taught early on (and it took time for me to accept), it is not how much money you make, it is how much you spend. As I age (now 74), I do draw down and spend a bit more but I always plan for the future so I do not go crazy in drawing down.
To answer the question, I am drawing down about 4% but I just put a bit of a dent in that with a $35K draw down (stock sale) for a new car.
Location: Was Midvalley Oregon; Now Eastside Seattle area
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Quote:
Originally Posted by Yes I know
I enjoy reading the posts on the various investment and retirement boards. But I find most posters live in their own little world.
A common thing is for the retired folks to brag to anyone who will listen how conservative they are in their retirement fund withdrawals. They are absolutely convinced that withdrawing 4% inflation adjusted per years is so 20th Century. They brag about how conservative they are and only pull out 2% a year. ( 2% is the new 4%)
Don't they know that they won't have as high of standard of living in retirement and will likely die with most of their retirement money sitting in their account?
OP, IMO, you are making a lot of assumptions.
Moving to a higher standard of living, is harder than you may believe when one is used to living within their income. A lot of our new found income has gone to uncovered dental, vision, and insurance deductibles.
We will leave a small legacy to our Only, just as our parents left a small legacy to us.
YMMV
A common thing is for the retired folks to brag to anyone who will listen how conservative they are in their retirement fund withdrawals. They are absolutely convinced that withdrawing 4% inflation adjusted per years is so 20th Century. They brag about how conservative they are and only pull out 2% a year. ( 2% is the new 4%)
2% may in fact be the new 4%. The evidence for that is mixed, and right now no one knows for sure. I can't blame anyone who has the means to get by decently on a 2% rate of withdrawal for playing it safe, especially early in retirement.
And this brings up a pet peeve of mine: since when is any frank discussion of financial decisions by those with means automatically humble-bragging? Do people have to pretend to be dirt poor, even though they are not, in order to participate in financial discussions on this board?
I don't think people who retire with little in the bank should be scolded; life can deal blows that can leave anyone poor, and none of us can know for sure what obstacles that person may have faced. And it's not like they have a time machine and go back and fix any past mistakes, anyway. But I also don't think people who have means need to be ashamed of stating that.
I am about 10 years from retirement (I think), and barring significant bad fortune (which could certainly happen: man plans and God laughs), I am on track to being worth a few million when I do retire. That's not "humble-bragging," that's simple fact. Deal with it. I'm not going to pretend to be poor when I'm not, simply to soothe someone else's wounded feelings.
There should be room for posters of all levels of means on this board to co-exist, especially in the Retirement forum.
No, but I can leave it to others who will make very good use of it.
Are people who donate to charity dumb because they are choosing to actually give some of their money away rather than spending 100% of it on themselves? If yes, well, I'm happy to be dumb!
Are you Warren a Buffet? Because he is worse, his grand children would love to have a million or two but he only gifted them college tuition and cost associated with it.
Are you Warren a Buffet? Because he is worse, his grand children would love to have a million or two but he only gifted them college tuition and cost associated with it.
Which is more than he owed them. Paid-for college isn't a gift to be sneered at, and Mr. Buffett's money is HIS, to do with as HE pleases, as he's the one who earned it.
(My only connection with Mr. Buffett is that I live in the same town and have driven by his house on a few occasions. But I make monthly donations to various charities, and hope to leave a decent financial legacy to several charities when I die. And since I have no kids, what else would I do with any leftover money? I suppose I could specify in my will that all the remaining funds from my accounts should be withdrawn and burned, but that seems needlessly wasteful.)
Both my Dad and the people who only withdraw 2% a year are dumb because, you should spend the money now, you can't take it with you in death.
Yeah...those people are dumb.
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