POLL: Withdrawal Rates For Real Retirees

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.

Withdrawal Rate For Real Retirees

Less than 1%
46
28%
Above 1%, Below 1.5%
8
5%
Above 1.5%, Below 2%
10
6%
Above 2%, Below 2.5%
20
12%
Above 2.5%, Below 3%
19
12%
Above 3%, Below 3.5%
21
13%
Above 3.5%, Below 4%
23
14%
Above 4%, Below 5%
13
8%
Above 5%, Below 6%
3
2%
Above 6%
2
1%
 
Total votes : 165

POLL: Withdrawal Rates For Real Retirees

Postby ResNullius » Sun Mar 17, 2013 1:52 pm

Just wondering. Only count what you withdraw from your actual investment portfolio. Don't count pensions or SS.
Last edited by ResNullius on Sun Mar 17, 2013 1:59 pm, edited 1 time in total.
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Re: Withdrawal Rates For Real Retirees

Postby sscritic » Sun Mar 17, 2013 1:58 pm

Where are the negative percentages for those of us who add to our retirement accounts from what is left over from our pensions and social security? If a positive percentage is a withdrawal, a negative percentage would be an addition.
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Re: Withdrawal Rates For Real Retirees

Postby ResNullius » Sun Mar 17, 2013 2:00 pm

sscritic wrote:Where are the negative percentages for those of us who add to our retirement accounts from what is left over from our pensions and social security? If a positive percentage is a withdrawal, a negative percentage would be an addition.

I believe a negative percentage would be less than 1%.
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Re: POLL: Withdrawal Rates For Real Retirees

Postby sscritic » Sun Mar 17, 2013 2:09 pm

I know that negative numbers are less than 1 (and voted accordingly). But you could have used only two categories for your poll, positive and negative, spenders and savers. I made the assumption you were looking for a finer division.
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Re: POLL: Withdrawal Rates For Real Retirees

Postby ObliviousInvestor » Sun Mar 17, 2013 2:15 pm

Should the denominator in the fraction be portfolio value as of the day of retirement (e.g., to compare to the "4% rule" and other such discussions) or current portfolio value?

I'm not retired, so I won't be voting either way -- just curious what you're looking for.
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Re: POLL: Withdrawal Rates For Real Retirees

Postby MathWizard » Sun Mar 17, 2013 2:43 pm

ObliviousInvestor wrote:Should the denominator in the fraction be portfolio value as of the day of retirement (e.g., to compare to the "4% rule" and other such discussions) or current portfolio value?

I'm not retired, so I won't be voting either way -- just curious what you're looking for.


I'm not the OP, but I assume that this would have to be % of current portfolio value. Using a
denominator from perhaps 20 years ago would vastly inflate the number.
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Re: POLL: Withdrawal Rates For Real Retirees

Postby SteveNet » Sun Mar 17, 2013 2:44 pm

I have been retired over 8 years, I am under 1% withdrawal (old habits are hard to break :wink: ), some years I'm @ 0%, some yrs I'm @ a negative number.
So if the stats were split into a separate category for negative withdrawal I would fit into two categories, unless I pulled an average for a choice.
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Re: POLL: Withdrawal Rates For Real Retirees

Postby The Wizard » Sun Mar 17, 2013 3:06 pm

One component of my plan is to w/d a percentage of my non-annuitized funds in lieu of Social Security from now (age 63) till age 70, at which point RMDs kick in on the tax-sheltered balance remaining. So your question has more than one possible path...
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Re: POLL: Withdrawal Rates For Real Retirees

Postby mickeyd » Sun Mar 17, 2013 3:37 pm

My current plan is to just use RMD numbers to make distributions as the lion's share of my portfolio is in tax shelters (IRA). I think that RMD @ age 70 is 3.65% or so. That's what I plan on taking.

I also plan on reinvesting a large chunk of that right back into my TSM taxable account. So it will not be a true withdrawal, more like an exchange/withdrawal combo.
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Re: POLL: Withdrawal Rates For Real Retirees

Postby Taylor Larimore » Sun Mar 17, 2013 3:46 pm

Res:

Sorry, I could not find an appropriate poll question.

I retired in June of 1982 at the age of 57. We had about a $1 million dollar portfolio to last us the rest of our lives. I didn't know about safe withdrawal rates (the Trinity Study wasn't published until 1998). We had no computers, Internet, Monte Carlo, or sophisticated calculators. We only knew that we had to be careful to make our money last ($1M at 4% = $40,000/year before tax).

So what happened? We simply withdrew what we needed and kept an eye on our portfolio balance. Most years our balance went up and we spent the money on vacations, luxuries and charity. When our balance went down we tightened our belt and economized.

Our plan has worked well.

Best wishes.
Taylor
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Re: POLL: Withdrawal Rates For Real Retirees

Postby CABob » Sun Mar 17, 2013 3:59 pm

Mine have averaged under 2% but there has been a wide range including a couple of years at 0%. And now I am taking RMD which is about 4%. A bit of the 4% is being reinvested.
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Re: POLL: Withdrawal Rates For Real Retirees

Postby wastenot » Sun Mar 17, 2013 4:04 pm

I retired in August, planning to withdraw 2.5% for the next four years or so. Thank goodness I have a DB pension which covers basic expenses. After 4 years, when I begin taking SS, a higher SWR would be justified.

But actually, this year I have withdrawn nothing from my portfolio since retiring. After decades of carefully saving money and investing it, I find it is difficult to begin spending it down. But when the weather warms up I have made tentative plans to go on a long overseas vacation, with no set date for returning. It is time to follow Thoreau's advice to "voyage on life now, your vacation from humbler toil having commenced." :sharebeer
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Re: POLL: Withdrawal Rates For Real Retirees

Postby ResNullius » Sun Mar 17, 2013 4:17 pm

Taylor Larimore wrote:Res:

Sorry, I could not find an appropriate poll question.

I retired in June of 1982 at the age of 57. We had about a $1 million dollar portfolio to last us the rest of our lives. I didn't know about safe withdrawal rates (the Trinity Study wasn't published until 1998). We had no computers, Internet, Monte Carlo, or sophisticated calculators. We only knew that we had to be careful to make our money last ($1M at 4% = $40,000/year before tax).

So what happened? We simply withdrew what we needed and kept an eye on our portfolio balance. Most years our balance went up and we spent the money on vacations, luxuries and charity. When our balance went down we tightened our belt and economized.

Our plan has worked well.

Best wishes.
Taylor

Thanks, Taylor. I wasn't trying to come up with a totally comprehensive scientific analysis of withdrawal rates (safe or otherwise), only trying to get an idea of what retired folks are doing right now. We talk about withdrawal rates all the time, as 4% or 5% or 2.5% is the holy grail, so I just wondered what real retirees were actually doing out there.
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Re: POLL: Withdrawal Rates For Real Retirees

Postby Carl53 » Sun Mar 17, 2013 4:24 pm

None for a few more years then some that gets converted or used while I'm delaying SS.
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Re: POLL: Withdrawal Rates For Real Retirees

Postby ResNullius » Sun Mar 17, 2013 4:54 pm

With 41 votes cast, I think we're seeing a trend. Almost all retirees voting had a withdrawal rate recently of less than 4%, with a large majority having less than 2%, and with a huge number having less than 1%. I'm a little surprised, but not overly so. Most BHs seem to have lived their lives by living below their means, saving and investing, and staying out of debt as much as possible, not to mention building fine retirement portfolios. This isn't to say that folks with a 4% or 5% withdrawal rate aren't all of the above too, only that they probably had less opportunity to save as much due to circumstances probably beyond their control, but they too seem to have made it to the promised land anyway. I know that these votes are heavily influenced by whether folks have a defined pension, are taking SS, had an inheritance, and many other factors, but the primary thrust seems to show that most of the responders have done a good job building for a secure retirement. By the way, I have on purpose stayed away from using Safe Withdrawal Rate, so as to not get into that never ending discussion. This poll was aimed at retirees' actual withdrawal rate, safe or otherwise.
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Re: POLL: Withdrawal Rates For Real Retirees

Postby PR101 » Sun Mar 17, 2013 5:08 pm

In my third year of ER. Each year I have set a budget ceiling of 3.6% of total portfolio value at start of year. YR 1 actual spending = 3.5%. YR 2 = 3.2%. YR 3 projected (1/2 way through now) = 2.6%. Withdrawal rates have declined because I have spent significantly less each year + portfolio growth. Hope to now keep it under 3%.

No pension or inheritance (yet). No Social Security for at least 16 more years. 80% of portfolio is in taxable investments. Dividends cover about 2/3 of expenses, capital gains cover about 1/3.
Last edited by PR101 on Mon Mar 18, 2013 8:42 pm, edited 1 time in total.
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Re: POLL: Withdrawal Rates For Real Retirees

Postby ResNullius » Sun Mar 17, 2013 5:18 pm

By the way, for the 570 or so who viewed but didn't vote (likely due to not being retired yet), you can see that there are good things waiting for those who follow the path to financial freedom...low cost, buy and hold investing with a decent asset allocation.
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Re: POLL: Withdrawal Rates For Real Retirees

Postby Bonnan » Sun Mar 17, 2013 5:22 pm

Retired now going on 15 years..Wow!.I always ignored the word "rate" and taken various amounts depending on our wants.. Small pensions getting smaller and smaller due to inflation but portfolio value is now double. I guess it is difficult driving a Jaguar when I rode a bicycle all my life. No regrets.
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Re: POLL: Withdrawal Rates For Real Retirees

Postby Sheepdog » Sun Mar 17, 2013 5:25 pm

For over 14 years I have withdrawn an average of 4.5% a year
No pension, but SS.
I have more than when I started. :D
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Re: POLL: Withdrawal Rates For Real Retirees

Postby EternalOptimist » Sun Mar 17, 2013 5:35 pm

Taylor Larimore wrote:Res:

Sorry, I could not find an appropriate poll question.

I retired in June of 1982 at the age of 57. We had about a $1 million dollar portfolio to last us the rest of our lives. I didn't know about safe withdrawal rates (the Trinity Study wasn't published until 1998). We had no computers, Internet, Monte Carlo, or sophisticated calculators. We only knew that we had to be careful to make our money last ($1M at 4% = $40,000/year before tax).

So what happened? We simply withdrew what we needed and kept an eye on our portfolio balance. Most years our balance went up and we spent the money on vacations, luxuries and charity. When our balance went down we tightened our belt and economized.

Our plan has worked well.

Best wishes.
Taylor



Good for you Taylor, I retired 2 years ago (am 63) and am doing the same thing. Am withdrawing essentially what I've needed, investments are higher than when I retired. Thanks for your experience, I should be so lucky!
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Re: POLL: Withdrawal Rates For Real Retirees

Postby lwfitzge » Sun Mar 17, 2013 5:44 pm

I'm withdrawing 4% as I'm not of age to collect pension and SS...once that happen I too will drop to 1% or less..
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Re: POLL: Withdrawal Rates For Real Retirees

Postby ResNullius » Sun Mar 17, 2013 5:46 pm

lwfitzge wrote:I'm withdrawing 4% as I'm not of age to collect pension and SS...once that happen I too will drop to 1% or less..

At the risk of stirring up a hornets nest, I think quite a few folks in the less than 1% group likely have a defined pension and SS to go along with their low withdrawal rate, and a few others might have an inheritance. If you take these factors into account, what we're seeing is an almost perfect bell curve, although I would bet that a good number of the less than 1%'ers did it without a defined pension or inheritance, just hard work being responsible for it.
Last edited by ResNullius on Sun Mar 17, 2013 5:49 pm, edited 1 time in total.
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Re: POLL: Withdrawal Rates For Real Retirees

Postby SteveNet » Sun Mar 17, 2013 5:48 pm

EternalOptimist wrote:
Taylor Larimore wrote:Res:

Sorry, I could not find an appropriate poll question.

I retired in June of 1982 at the age of 57. We had about a $1 million dollar portfolio to last us the rest of our lives. I didn't know about safe withdrawal rates (the Trinity Study wasn't published until 1998). We had no computers, Internet, Monte Carlo, or sophisticated calculators. We only knew that we had to be careful to make our money last ($1M at 4% = $40,000/year before tax).

So what happened? We simply withdrew what we needed and kept an eye on our portfolio balance. Most years our balance went up and we spent the money on vacations, luxuries and charity. When our balance went down we tightened our belt and economized.

Our plan has worked well.

Best wishes.
Taylor



Good for you Taylor, I retired 2 years ago (am 63) and am doing the same thing. Am withdrawing essentially what I've needed, investments are higher than when I retired. Thanks for your experience, I should be so lucky!


Even given today's "computers, Internet, Monte Carlo, or sophisticated calculators" I find myself thinking along those same lines of AA draw down despite what modern theory has to offer.
Besides old habits are hard to break (frugal).
Best wishes from myself as well. :beer
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Re: POLL: Withdrawal Rates For Real Retirees

Postby wawoodjr » Sun Mar 17, 2013 5:56 pm

I manage my mother's retirement accounts and I'm very comfortable with a 6% withdrawal rate given her age of 82.
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Re: POLL: Withdrawal Rates For Real Retirees

Postby Peter Foley » Sun Mar 17, 2013 6:30 pm

I'm a couple months short of my first year in retirement. We are at about 1% so far from taxable accounts.

sscritic wrote:
I know that negative numbers are less than 1 (and voted accordingly). But you could have used only two categories for your poll, positive and negative, spenders and savers. I made the assumption you were looking for a finer division.


Come on sscritic, get with the program. I can't goose the economy all by myself! :wink: I had to buy a newer used car just to get into positive territory.

Seriously, I think the first year of retirement can be a bit of an anomaly. I was planning for about 2 to 2.5. My deferred accounts have gained so much that I am multiple percentage points into negative territory if I include all potential retirement resources.
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Re: POLL: Withdrawal Rates For Real Retirees

Postby Angst » Sun Mar 17, 2013 6:37 pm

Peter Foley wrote:Seriously, I think the first year of retirement can be a bit of an anomaly. I was planning for about 2 to 2.5. My deferred accounts have gained so much that I am multiple percentage points into negative territory if I include all potential retirement resources.

Nice place to be. Make hay while the sun shines. 8-)
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Re: POLL: Withdrawal Rates For Real Retirees

Postby Taylor Larimore » Sun Mar 17, 2013 7:15 pm

We talk about withdrawal rates all the time, as 4% or 5% or 2.5% is the holy grail,

Res:

Mathematicians love numbers. Fortunately for them, the stock and bond markets spew-out millions of numbers every day which are carefully preserved and available for them to analyze. Unfortunately for investors, no one can predict the future of the stock and bond markets. Past performance is useful as a guideline, but we must never forget:

Past performance does not guarantee future performance.

In one of his excellent papers, Wade Pfau wrote:
Conclusion
Further refinements to this framework are needed to include a broader range of retirement-income strategies. These include optimization for the Social Security claiming decision, bond ladders and time segmentation approaches, delayed or laddered annuity purchases, deferred income annuities (longevity insurance), immediate variable annuities, long-term care insurance, life insurance, reverse mortgages, home equity loans, structured products based on derivatives to protect on the downside while maintaining some upside, and various other products. Equally important, taxes must be added to the analysis so that the efficient frontier can be calculated in after-tax terms. More detailed scenarios with varying asset-class assumptions, personalized client circumstances, and changing patterns for spending needs also can help to determine which sorts of findings are generalizable across a wide variety of circumstances. The approach described here provides the initial stages of a framework that can better inform planners and clients, and guide them in the direction of optimal retirement income strategies.

Best wishes.
Taylor
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Re: POLL: Withdrawal Rates For Real Retirees

Postby Grasshopper » Sun Mar 17, 2013 7:43 pm

Sheepdog wrote:For over 14 years I have withdrawn an average of 4.5% a year
No pension, but SS.
I have more than when I started. :D


Retired in 2006 age 54, expenses out of taxable only, converting tIRA to ROTH, and still have more than I started with.
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Re: POLL: Withdrawal Rates For Real Retirees

Postby gkaplan » Sun Mar 17, 2013 8:08 pm

Does withdrawal rates mean withdrawals in addition to one's RMD?
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Re: POLL: Withdrawal Rates For Real Retirees

Postby Sheepdog » Sun Mar 17, 2013 10:23 pm

gkaplan wrote:Does withdrawal rates mean withdrawals in addition to one's RMD?

In my opinion, withdrawal means withdrawals from all retirement accounts to meet expenses. If you spend your RMD, then that is part of your withdrawals as are any other withdrawals. If you don't spend your RMD, but instead, you reinvest the RMD, that is not a withdrawal.
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Re: POLL: Withdrawal Rates For Real Retirees

Postby Yipee-Ki-O » Sun Mar 17, 2013 11:57 pm

I'm with Taylor. Being neither an engineer nor numbers oriented, I just spend what I need to spend. And as the child of Depression Era parents I tend to spend carefully. Sometimes at the end of the year I'll doodle on the back of an envelope to see what percentage I've withdrawn from my portfolio but more often than not I don't because it doesn't much interest me. It's worked for eight years now as my portfolio is larger now than when I retired. And once I hit Social Security age I figure I'll really be in tall cotton. I once worried about my lack of affinity and aptitude for numbers but I've come to appreciate that lacking both traits save me from much of the anxiety I see on display in the regular threads on SWR's.
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Re: POLL: Withdrawal Rates For Real Retirees

Postby likegarden » Mon Mar 18, 2013 1:02 am

I am not participating in this poll, because my withdrawal rate is irregular due to doing a home renovation last year and buying a new car this year. Usually we do 2 % withdrawal, but could live from pension and SS without it.
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Re: POLL: Withdrawal Rates For Real Retirees

Postby Professor Emeritus » Mon Mar 18, 2013 9:32 am

Not quite sure what any such numbers mean. DW retires this year.
I married DW because she was brilliant cute and cheaper than I was.
(Actual recent conversation. )
Me "We may need a new car."
Her " You just bought a new car"
Me "that was in 2005"
Her "So?" I've got clothes older than that
Me "You have clothes older than President Obama"
Her So??

We never spent what we earned. (She has been much better paid than me for the last 20 years).
We both have DB pensions.
We plan on withdrawing from retirement savings over the next 8/9 years the equivalent of SS so we can defer SS.
If I get paid for consulting it reduces the withdrawals.
I think of it all in absolute amounts, not percentages. It costs about 360K to defer SS for the both of us.
but it is, in effect the purchase of a low cost inflation protected annuity.
I keep money in Wellesley for this purpose and put all the rest in the Vanguard low cost wall street casino funds VIGAX
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Re: POLL: Withdrawal Rates For Real Retirees

Postby midareff » Mon Mar 18, 2013 9:40 am

I have been running about 2.4% in my first year composed of dividend distributions and a systematic withdrawal from taxable. Am planning on raising it to about 3% and resuming international travel.
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Re: POLL: Withdrawal Rates For Real Retirees

Postby richard » Mon Mar 18, 2013 9:51 am

In other threads on safe withdrawal rates, there have been many posts to the effect that 2% or 2.5% is absurdly low and no one could retire if that was the highest safe level. In this poll, a solid majority is at 2.5% or below.
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Re: POLL: Withdrawal Rates For Real Retirees

Postby bigred77 » Mon Mar 18, 2013 10:02 am

I'm pretty shocked by the results so far...

You guys need to live it up a little...
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Re: POLL: Withdrawal Rates For Real Retirees

Postby rixer » Mon Mar 18, 2013 10:07 am

I didn't vote because I haven't started withdrawal yet.

However, this is interesting to see what others are doing. I just retired but haven't started to withdraw or collect SS yet. I have some money in a taxable account and the wife still works. I plan on taking SS at 66 in 1yr 5 months. Hopefully the wife will retire then and take hers at 63. When we start drawing from our retirement accts, we're planning on a SWR of 4%. I think it will take us till mid 80's. If we're still kicking, we can sell the paid off house and move into a senior apt. Though we started late, we saved hard, paid off the house, other debt, and contributed as much as we could for retirement. We scrimped to do this and we plan on spending it ourselves in retirement. I don't care if there's anything left for inheritance. If the last check bounces, I'm okay with it.

That's the plan, but it can always be adjusted.
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Re: POLL: Withdrawal Rates For Real Retirees

Postby dbr » Mon Mar 18, 2013 10:16 am

If either or both of income (eg SS at a late age) and expenses (for any variety of reasons) are variable over time, there is no withdrawal rate, not even an historical average, that aligns in a meaningful way with the typical SWR description.
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Re: POLL: Withdrawal Rates For Real Retirees

Postby john94549 » Mon Mar 18, 2013 10:23 am

My wife and I are 65, pushing 66. I am retired. Wife still working (her choice). She's still contributing to her 401K and we have not started withdrawals. Voted <1% per clarification.
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Re: POLL: Withdrawal Rates For Real Retirees

Postby Peter Foley » Mon Mar 18, 2013 10:34 am

I wouldn't be too suprised by the poll numbers. Anyone who retired in 2010 or later has seen a pretty good run up in their equity positions. What is a bit surprising is the number of individuals who have been retired for a number of years and have a very low or negative withdrawal rate. This reinforces the fact that one of the principles of "bogleheadism" is to live below one's means. Readers here are unlikely to be a representative sample of retirees based on many of the polls I have seen.
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Re: POLL: Withdrawal Rates For Real Retirees

Postby The Wizard » Mon Mar 18, 2013 10:55 am

Sheepdog wrote:
gkaplan wrote:Does withdrawal rates mean withdrawals in addition to one's RMD?

In my opinion, withdrawal means withdrawals from all retirement accounts to meet expenses. If you spend your RMD, then that is part of your withdrawals as are any other withdrawals. If you don't spend your RMD, but instead, you reinvest the RMD, that is not a withdrawal.

OK, so there are two different figures then: your Withdrawal Rate and your Expenditure Rate.
For those of us with a large percentage of assets in tax-sheltered accounts, some strategy may be needed to avoid a large income jump after age 70. I don't have my strategy completely figured out yet but I'm working on it...
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Re: POLL: Withdrawal Rates For Real Retirees

Postby RobertAlanK » Mon Mar 18, 2013 10:56 am

It would be interesting to see the poll results from only those retirees without a pension, or perhaps asking respondents to estimate what their withdrawal rate might be if they didn't have that income stream.

I understand that many of those who anticipated having a pension in retirement made different investment decisions while working and accumulating than they might have done without that assurance. But with traditional pensions becoming less and less likely for many (like myself) still planning for retirement these poll numbers at the low end would seem unlikely to continue as more rely on their own investments and SS.

No doubt there is research, but I'd find it interesting to learn how much a realistic increasing of one's savings rate can offset the absence of a guaranteed pension. Or, alternatively, whether the shift from a defined benefit to defined contribution reality can ever really be compensated for by better spending/savings behavior.
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Re: POLL: Withdrawal Rates For Real Retirees

Postby gkaplan » Mon Mar 18, 2013 11:29 am

I'll be retiring at the end of next year. I think I can live on my RMD, except for my first year, when I'll have some transitioning expenses when I relocate to Portland, so I may have to dip into my Roth IRA. Or maybe not.
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Re: POLL: Withdrawal Rates For Real Retirees

Postby kmurp » Mon Mar 18, 2013 11:38 am

I'm afraid I find these low withdrawal rates depressing. Living off of 20k per year would be VERY difficult for me. Propert taxes alone are like 14k for me and healthcare will likely be what; another 10k? Not sure what my Medicare costs will be.
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Re: POLL: Withdrawal Rates For Real Retirees

Postby Sheepdog » Mon Mar 18, 2013 11:43 am

kmurp wrote:I'm afraid I find these low withdrawal rates depressing. Living off of 20k per year would be VERY difficult for me. Propert taxes alone are like 14k for me and healthcare will likely be what; another 10k? Not sure what my Medicare costs will be.

Please don't be depressed. Remember that these withdrawal rates are to supplement our Social Security and pensions. I can't imagine any Boglehead is living off of 20K.
I will say that all of us don't have to pay $14K in property taxes. I'm glad that I don't. (well under $2K for me)
By the way, $12K is a better estimate for a retired couple's healthcare today including, Medicare and Medigap/Part D insurance premiums and out of pocket expenses such as medications, dental and hearing. It can be higher though.
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Re: POLL: Withdrawal Rates For Real Retirees

Postby SteveNet » Mon Mar 18, 2013 11:57 am

Sheepdog wrote:
kmurp wrote:I'm afraid I find these low withdrawal rates depressing. Living off of 20k per year would be VERY difficult for me. Propert taxes alone are like 14k for me and healthcare will likely be what; another 10k? Not sure what my Medicare costs will be.

Please don't be depressed. Remember that these withdrawal rates are to supplement our Social Security and pensions. I can't imagine any Boglehead is living off of 20K.
I will say that all of us don't have to pay $14K in property taxes. I'm glad that I don't. (well under $2K for me)
By the way, $12K is a better estimate for a retired couple's healthcare today including, Medicare and Medigap/Part D insurance premiums and out of pocket expenses such as medications, dental and hearing. It can be higher though.


Exactly right.
Everyone's situation is different, I live off of 26k per yr aprox. No loans at all. But my prop taxes are 1K and my heath insurance is included in my retirement, my pension is 32K.
So yes my withdrawal is less than 1%.
Being frugal is hard to learn, but once learned is hard to stop.
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Re: POLL: Withdrawal Rates For Real Retirees

Postby bengal22 » Mon Mar 18, 2013 12:01 pm

I am sure that there is a correlation between withdrawal rate and age.

Currently, since I am not drawing social security yet and I only have a pension for income, I am withdrawing more than I will when I get older and elect to draw social security. In addition I would think that all retirees draw what they need and only utilize the "safe withdrawal rate(4%?) to reality check their financial plan.

My plan is to delay social security until at least the time I hit full retirement age(66) so my withdrawal rate will be in the 4-5% range until then. However, it is my prayer that my asset allocation(55/45) will continue to hit historical rates and I will at the very least tread water until I start drawing social security.

Well at least its a plan.
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Re: POLL: Withdrawal Rates For Real Retirees

Postby John Z » Mon Mar 18, 2013 12:52 pm

Interesting poll.
Withdrawal 1.05% for first year of retirement with only SS income, no pension. Low expenses so could live on nearly all SS if absolutely necessary, and played it safe for the first year. Now that we know what we spent and with the market having risen for months on end, we saved up some dental work needing to be done, we'll probably go for a full 4% or 4.5% this year.
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Re: POLL: Withdrawal Rates For Real Retirees

Postby tadamsmar » Mon Mar 18, 2013 12:56 pm

I see some happy heirs in the future :happy
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Re: POLL: Withdrawal Rates For Real Retirees

Postby Sheepdog » Mon Mar 18, 2013 1:50 pm

tadamsmar wrote:I see some happy heirs in the future :happy

Some happy favorite charities also.
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