How common is this [Have more money 10+ years into retirement]

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stemikger
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How common is this [Have more money 10+ years into retirement]

Post by stemikger » Mon Jan 11, 2016 10:53 am

I know quite a few retirees that are 10 years or more into retirement and even with distributions, have more money in their account then when they retired. How many find themselves in this situation. Also would you care to share your asset allocation in retirement.

Steve
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vtMaps
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Re: How common is this

Post by vtMaps » Mon Jan 11, 2016 10:59 am

stemikger wrote:have more money in their account then when they retired.
More money real, or nominal? --vtMaps
The optimist proclaims that we live in the best of all possible worlds; and the pessimist fears this is true. --James Branch Cabell

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stemikger
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Re: How common is this

Post by stemikger » Mon Jan 11, 2016 11:01 am

vtMaps wrote:
stemikger wrote:have more money in their account then when they retired.
More money real, or nominal? --vtMaps
Nominal will work.

Thanks!
Last edited by stemikger on Mon Jan 11, 2016 11:03 am, edited 1 time in total.
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magneto
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Re: How common is this

Post by magneto » Mon Jan 11, 2016 11:19 am

stemikger wrote:I know quite a few retirees that are 10 years or more into retirement and even with distributions, have more money in their account then when they retired. How many find themselves in this situation. Also would you care to share your asset allocation in retirement.
Steve
Yes we in retirement find ouselves in this fortunate position, by dint of awareness of valuations, and patient plodding, no rash decisions.

Our asset allocation is unlikely to be of much assistance to others, as it is valuation driven - not the usual constant ratio.
However in an effort to be helpful :-

50% Illiquid portfolio in rental real estate, managed by my wife
50% Liquid portfolio in stocks,bonds and cash; according to my wife "for me to squander".

At year end liquid portfolio was as follows :-
29% Stocks (expected normal range 25%-50%)
13% Bonds (incl Infrastructure as Quasi IL Bonds)
58% Cash (incl large dollop of I Bond type assets)

Hope you can glean something useful from this jumble of information :!:

Thanks for all the good posts. They are always of interest. :!:

EDIT : We retired in 1992 aged 49 and 44 respectively.
Full time investors since then.
For us Real Estate was the clincher in the late 90s, with at one point over 10 times the real yield of stocks on offer.
Before that we were struggling to make ends meet.
Watch those real yields :!:
Current Stock weakness is quite acceptable. Allows cash to be funnelled gently into stocks to boost real income.

Good Luck to us All
Last edited by magneto on Mon Jan 11, 2016 1:59 pm, edited 5 times in total.
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Info_Hound
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Re: How common is this

Post by Info_Hound » Mon Jan 11, 2016 11:40 am

I'm only 5 years into retirement, so maybe my experience is not typical.

I have more money today than I did on my last day working. Even this year this is true, I've starting updating my spreadsheets for the year and this popped up. Made me happy as I was thinking quite the opposite given recent financial events.

I use the basic Boglehead 3 fund approach with a 40/60 (stocks/bonds) asset allocation. Nothing fancy at all. I do not tinker with my holdings unless I need to reallocate to balance. I've only had to do that once so far.

Keep It Simple Sweetie is my motto.

Rodc
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Re: How common is this

Post by Rodc » Mon Jan 11, 2016 12:09 pm

FWIW: This is what commonly happens in Monte Carlo simulations using fixed (but indexed to inflation) withdrawals. When one takes out an amount small enough to be reasonably safe and markets are better than awful one sees the portfolio value rise, even in real terms.

Of course the challenge is what happens not so much if markets are poor (a reasonably safe withdrawal rate takes that into account from the start), but what if expenses blow up for some reason. This I suspect tends to happen near the end more often than early.

It is good to see that the experience of many follows along much like the modelings suggests would be common.
We live a world with knowledge of the future markets has less than one significant figure. And people will still and always demand answers to three significant digits.

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Re: How common is this

Post by heyyou » Mon Jan 11, 2016 12:36 pm

At ten years since retiring at 55, our portfolio now is just barely even in real value from 2005, with help from a no COLA pension that has lost 21% to CPI inflation during that period. Prior to retirement, we were living on near half of our gross, then the pension was about that amount. We are still thrilled and feel grateful that we don't have to work, to live like we want to live. We are needing to spend more now to replace items that we acquired new in preparation for retiring.

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Re: How common is this

Post by JohnF » Mon Jan 11, 2016 12:40 pm

Net worth has more than doubled since retiring in 2002. As of the beginning of the year 75% stock, 8% bonds, 11% real estate and 6% cash. From another perspective, 18% tax free (Roth), 54% tax deferred and 28% taxable.

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Re: How common is this

Post by gilgamesh » Mon Jan 11, 2016 12:45 pm

I think the critical factor is the withdrawal strategy and not necessarily asset allocation. Would love to hear Info-Hound's withdrawal strategy. At least the withdrawal rate.

P.S: If withdrawal rate is 2%, of course most will have their nest egg grow.

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Re: How common is this

Post by dkturner » Mon Jan 11, 2016 12:57 pm

I have only been retired for 4 1/4 years, my wife retired about 12 years ago. Our asset allocation is approximately 50/50 (60/40 until 2009). At year end 2015 the market value of our cash and marketable securities was 33.7% higher, in nominal terms, than when I retired in September of 2011 and 130.2% higher in nominal terms than when my wife retired in late 2003. We have been beneficiaries of stock and bond bull markets for most of the last 12 years and have only had to withdraw about 1.8% of our portfolio value per year since I retired in 2011.

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stemikger
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Re: How common is this

Post by stemikger » Mon Jan 11, 2016 2:04 pm

Thanks everyone! I appreciate your input. It sounds like everyone is doing great. My goal is to retire in less than 10 years. Hoping it can happen, but if it doesn't that's fine too!
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Re: How common is this

Post by John Z » Mon Jan 11, 2016 3:30 pm

Been retired for 3.5 years (6-2012), withdrawing 4% yearly with a modified coffeehouse portfolio of 50/50 and have 12% more now than on 6-2012.

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Re: How common is this

Post by joebh » Mon Jan 11, 2016 3:38 pm

stemikger wrote:I know quite a few retirees that are 10 years or more into retirement and even with distributions, have more money in their account then when they retired. How many find themselves in this situation. Also would you care to share your asset allocation in retirement.
I too know retirees that have larger accounts now than when they retired. I also know a few retirees who have essentially run out of money.

Just remember that the population here at Bogleheads isn't representative of the entire population at large. Folks here tend to be better at planning and putting themselves in position to succeed.

Also remember that peoples' portfolios depend in part on their goals. Some go into retirement with the intention of leaving a legacy. Others aim to spend it all down.

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stemikger
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Re: How common is this

Post by stemikger » Mon Jan 11, 2016 3:54 pm

magneto wrote: Thanks for all the good posts. They are always of interest. :!:
Good Luck to us All
I just use this forum as a sounding board, if anyone enjoys the voices in my head, even better. lol. Glad you enjoy them!

I do like when a new younger shipmate tells me I helped them. It only happened on a few occasions, but it made me feel good.

:beer
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stemikger
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Re: How common is this

Post by stemikger » Mon Jan 11, 2016 3:57 pm

joebh wrote:
stemikger wrote:I know quite a few retirees that are 10 years or more into retirement and even with distributions, have more money in their account then when they retired. How many find themselves in this situation. Also would you care to share your asset allocation in retirement.
I too know retirees that have larger accounts now than when they retired. I also know a few retirees who have essentially run out of money.

Just remember that the population here at Bogleheads isn't representative of the entire population at large. Folks here tend to be better at planning and putting themselves in position to succeed.

Also remember that peoples' portfolios depend in part on their goals. Some go into retirement with the intention of leaving a legacy. Others aim to spend it all down.
So true! :beer
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Re: How common is this

Post by Rodc » Mon Jan 11, 2016 4:08 pm

stemikger wrote:I know quite a few retirees that are 10 years or more into retirement and even with distributions, have more money in their account then when they retired. How many find themselves in this situation. Also would you care to share your asset allocation in retirement.

Steve

FWIW: My mother died at age 89 with far more than she (and my dad) started with. She frankly should have spent at least a little more as there were somethings she wanted (and either did not get like hearing aids, or waited a very long time like a laptop with a screen sharp enough that it worked much better for her) and could have easily afforded. But she wanted to save her money for her grandkids and my sister.

I do not know how to count how long she was in withdrawal stage. Dad "retired" at age 57, she would have been 54. But not too long after went back to work part-time teaching at the local junior college and worked there until age 79. His pension and SS, plus what little a part-time teaching gig nets paid for most of their expenses and so the nest-egg mostly was left to grow.
We live a world with knowledge of the future markets has less than one significant figure. And people will still and always demand answers to three significant digits.

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Toons
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Re: How common is this

Post by Toons » Mon Jan 11, 2016 6:22 pm

More money in accounts now than when retired.
75/25 Stock Bond.
No withdrawals necessary so far. :happy
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

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Re: How common is this

Post by tennisplyr » Mon Jan 11, 2016 6:58 pm

Been retired for 5 years with a 4+% withdrawal and a 50/50 allocation and am above 2011 number.....for now.
Those who move forward with a happy spirit will find that things always work out.

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Re: How common is this

Post by btenny » Mon Jan 11, 2016 7:39 pm

I have been retired 16 years. I only have good records back to 2002 but since then I have more than I started with. I have been withdrawing about 3.5-4% for 13 years. My asset allocation started at 55% stocks in 2002 and I gradually ramped it down to 40% in 2014 and then to 33% as of December. I may raise it some later this year if the market keeps going down.

Good Luck

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Re: How common is this

Post by dpc » Mon Jan 11, 2016 7:48 pm

After a massive bull market run, I suspect it is pretty common for Boglehead retirees withdrawing only 3 or 4% per year who retired fairly recently. Sequence of returns is hugely important for retirees. Sometimes we give ourselves too much credit and neglect the impact of luck.
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Re: How common is this [Have more money 10+ years into retirement]

Post by joe8d » Mon Jan 11, 2016 9:33 pm

I do.
All the Best, | Joe

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Re: How common is this

Post by randomguy » Mon Jan 11, 2016 9:49 pm

dpc wrote:After a massive bull market run, I suspect it is pretty common for Boglehead retirees withdrawing only 3 or 4% per year who retired fairly recently. Sequence of returns is hugely important for retirees. Sometimes we give ourselves too much credit and neglect the impact of luck.
If you are using a 4% SWR, on average you will have 2x as much real money as you started with 30 years later.

If you go back and look,anyone who didn't retire in 2000 is up nominally if they held something like 50/50 with a 4% SWR. Now that money may have lost like 30% due to inflation but you are also looking at funding 15 years of retirement instead of 30 so you are still ahead of the game

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Re: How common is this

Post by freebeer » Mon Jan 11, 2016 9:53 pm

gilgamesh wrote:I think the critical factor is the withdrawal strategy and not necessarily asset allocation....
No I think the critical factor is retirement date... note 2002 retiree with doubled net worth, 2005 retiree (so not so far before the crash) barely at par.

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Re: How common is this [Have more money 10+ years into retirement]

Post by Sheepdog » Mon Jan 11, 2016 10:59 pm

I retired over 17 years ago (Oct.1998). I lived off of my savings and SS. I was conservative in investing in that my portfolio was never higher than 56% stocks in this period. That maximum percentage was in 1999 at which time I started reducing my stock allocation heading to "100 minus my age". I reached that in 2002. At that point my allocation was 31% stock. When I reached 23% in 2010, I remained there. My average return in these 17 years was 5.44% annually while I withdrew an annual average of 4.59% for expenses. My investment total has grown.

edit: Since reducing my stock allocation to 23% in 2010, my average annual return in this 6 year period was a surprisingly 6.37%.
Last edited by Sheepdog on Mon Jan 11, 2016 11:26 pm, edited 1 time in total.
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Re: How common is this [Have more money 10+ years into retirement]

Post by cheese_breath » Mon Jan 11, 2016 11:14 pm

Retired 19 years ago, and I have lots more than I started with. But cash from an ERO, pensions, and SS have reduced the need to draw from my investments.
The surest way to know the future is when it becomes the past.

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Re: How common is this

Post by Miriam2 » Mon Jan 11, 2016 11:18 pm

stemikger wrote:I just use this forum as a sounding board, if anyone enjoys the voices in my head, even better. lol. Glad you enjoy them!
I do like when a new younger shipmate tells me I helped them. It only happened on a few occasions, but it made me feel good.
Well stemikger, I'm not younger than you :shock: but your posts help me :happy Without you, I would not know the virtues of the Balanced Index Fund.

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stemikger
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Re: How common is this

Post by stemikger » Mon Jan 11, 2016 11:40 pm

Miriam2 wrote:
stemikger wrote:I just use this forum as a sounding board, if anyone enjoys the voices in my head, even better. lol. Glad you enjoy them!
I do like when a new younger shipmate tells me I helped them. It only happened on a few occasions, but it made me feel good.
Well stemikger, I'm not younger than you :shock: but your posts help me :happy Without you, I would not know the virtues of the Balanced Index Fund.

Thanks Miriam2! Glad I brought this wonderful fund to your attention. John Bogle and Morningstar are also fans of the Balanced Index Fund. You picked a winner!! :beer

Also, great replies everyone!
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Re: How common is this [Have more money 10+ years into retirement]

Post by littlebird » Tue Jan 12, 2016 12:09 am

28 years into early retirement. Regular and spousal S.S and a modest pension provides comfortably for us. We only withdraw for capitol purchases.

Early in retirement drew down while waiting for S.S. and spent generously on U.S. travel. Moved to a much lower COL area.

Allocation is age in bonds using the age of the considerably younger of us. But I do over-rebalance opportunistically when the occasion arises (as it did 2x lately).

Have 5x what we started with (which in retrospect was an scarily tiny amount!). Received small inheritance and made a profit on real estate transaction - included in the 5x; I track only net worth, not investment return. Have been very fortunate.

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Re: How common is this [Have more money 10+ years into retirement]

Post by CABob » Tue Jan 12, 2016 12:25 am

Count me in (14 years into retirement).
Bob

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Re: How common is this [Have more money 10+ years into retirement]

Post by basspond » Tue Jan 12, 2016 1:30 am

I know some relatives that have quadrupled their assets after 20 years. They have accomplished by maintaining their simple lifestyle, and supplementing their pension/SS with rental property.

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Re: How common is this [Have more money 10+ years into retirement]

Post by carolinaman » Tue Jan 12, 2016 8:01 am

5 years into retirement. Portfolio has increased 18% despite paying taxes on redemptions of 20% of portfolio for Roth and taxable accounts.

AA: 40% equity, 60% fixed income (ages 71 and 73)

We have only used a small amount of redemptions for home improvements, less than $20k. Otherwise, redemptions went into taxable investments.

We are blessed that our SS and my pension more than cover our expenses.

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Re: How common is this

Post by jrbdmb » Tue Jan 12, 2016 9:41 am

joebh wrote:I too know retirees that have larger accounts now than when they retired. I also know a few retirees who have essentially run out of money.

Just remember that the population here at Bogleheads isn't representative of the entire population at large. Folks here tend to be better at planning and putting themselves in position to succeed.

Also remember that peoples' portfolios depend in part on their goals. Some go into retirement with the intention of leaving a legacy. Others aim to spend it all down.
So are there any conclusions you can draw for those who have "essentially run out of money?" Were the issues not enough savings / poor asset allocation or investment decisions / overspending in general / unexpected expenses?

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Re: How common is this

Post by dbr » Tue Jan 12, 2016 9:43 am

jrbdmb wrote:
joebh wrote:I too know retirees that have larger accounts now than when they retired. I also know a few retirees who have essentially run out of money.

Just remember that the population here at Bogleheads isn't representative of the entire population at large. Folks here tend to be better at planning and putting themselves in position to succeed.

Also remember that peoples' portfolios depend in part on their goals. Some go into retirement with the intention of leaving a legacy. Others aim to spend it all down.
So are there any conclusions you can draw for those who have "essentially run out of money?" Were the issues not enough savings / poor asset allocation or investment decisions / overspending in general / unexpected expenses?
Drug addiction resulting in depletion of significant assets to zero (real life serious answer). Another case is under review as the retiree has not yet actually been reduced to zero due to under saving and over spending with gambling addiction, but the trajectory is clear. Actually I know a third case involving severe disability and large medical expenses due to accident with brain injury and also cancer. A fourth case involves no savings from disability and unemployment with bipolar disorder, but that person "retired" long ago.

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Re: How common is this [Have more money 10+ years into retirement]

Post by jimgour » Tue Jan 12, 2016 10:07 am

This year will be 15 years in retirement (NOV 2001 ages 56 and 54).
AA: 75% Stocks/25% Bonds (50% Total Stock Market/25% Total Int'l Stock Market/25% Total Bond) all at Vanguard.
Have COLA pension which does not cover all expenses.
Have been withdrawing < 3%.
Have more now than when we retired (after adjusting for inflation).
Jim

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Re: How common is this

Post by gilgamesh » Tue Jan 12, 2016 10:26 am

freebeer wrote:
gilgamesh wrote:I think the critical factor is the withdrawal strategy and not necessarily asset allocation....
No I think the critical factor is retirement date... note 2002 retiree with doubled net worth, 2005 retiree (so not so far before the crash) barely at par.
I agree, retirement date is the critical factor.

However, as we don't know what out future holds, it could be any of the previous 30 year rolling period. To evaluate future the starting date has to be unknown (random).

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Re: How common is this

Post by Info_Hound » Tue Jan 12, 2016 10:52 am

gilgamesh wrote:I think the critical factor is the withdrawal strategy and not necessarily asset allocation. Would love to hear Info-Hound's withdrawal strategy. At least the withdrawal rate.

P.S: If withdrawal rate is 2%, of course most will have their nest egg grow.
I withdraw from my IRA no more than 3% but it is usually around 2.5%. I need less than 3% withdrawal to live on given I have several other income sources, pensions, annunities and the like. I carefully track my expenses yearly and don't withdraw more than I need. Dividends are reinvested instead of paid out. Having a TSP account and sticking to Fido's Spartan offerings keeps my expenses very low. 60% of my income is COLA'd right now and it will climb to 85% by age 70.

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Re: How common is this

Post by gilgamesh » Tue Jan 12, 2016 11:02 am

Info_Hound wrote:
gilgamesh wrote:I think the critical factor is the withdrawal strategy and not necessarily asset allocation. Would love to hear Info-Hound's withdrawal strategy. At least the withdrawal rate.

P.S: If withdrawal rate is 2%, of course most will have their nest egg grow.
I withdraw from my IRA no more than 3% but it is usually around 2.5%. I need less than 3% withdrawal to live on given I have several other income sources, pensions, annunities and the like. I carefully track my expenses yearly and don't withdraw more than I need. Dividends are reinvested instead of paid out. Having a TSP account and sticking to Fido's Spartan offerings keeps my expenses very low. 60% of my income is COLA'd right now and it will climb to 85% by age 70.
Thanks!

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Re: How common is this [Have more money 10+ years into retirement]

Post by Sconie » Tue Jan 12, 2016 11:42 am

Retired for 3.5 years (last day of work was 6/30/12) with a 65% equity/35% fixed portfolio and an approximate 2% withdrawal rate. As of 12/31/15 I am, in nominal terms, up 21.2% during/over the prior 3 1/2 year period.
I know that you think you understand what you thought I said, but I don't think you realize that what I said is necessarily what I meant......

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Re: How common is this [Have more money 10+ years into retirement]

Post by Offshore » Tue Jan 12, 2016 1:11 pm

Observations from reading this thread:

Folks with more $ into retirement tend to have pensions or some form of income.
They retired at an opportunistic period for market returns.
They have invested aggressively (% bond allocation something less than current age)

All good and well. My sincere congratulations.

Question for retirees under the age of 65 (or those over 65 who retired at a younger age). What did you do about health insurance? It's expensive! Do you use Obamacare? Are you buying into a group rate somewhere? I've learned one may not use HSA savings to pay health insurance premiums, a real bummer discovery. I like point-of-service plans more than HMO's because this allows me to choose my doctor, but these are expensive. I may have to compromise on this. Again, what are the pre-Medicare retirees doing about health insurance? Thank you.

Off Shore

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Re: How common is this [Have more money 10+ years into retirement]

Post by joebh » Tue Jan 12, 2016 1:15 pm

Offshore wrote:Question for retirees under the age of 65 (or those over 65 who retired at a younger age). What did you do about health insurance? It's expensive! Do you use Obamacare?
Yes.
Now that we are low-income, it's nowhere near as expensive to purchase healthcare from the marketplace as I would have expected.

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Aptenodytes
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Re: How common is this [Have more money 10+ years into retirement]

Post by Aptenodytes » Tue Jan 12, 2016 1:35 pm

Most people here should plan on better than even odds that they have more money 10 years into retirement than when they began retirement. That's just the math of withdrawal rates and stock market returns.

You can explore this quantitatively with FireCalc.

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Re: How common is this [Have more money 10+ years into retirement]

Post by Ron » Tue Jan 12, 2016 2:31 pm

I guess I'm an outlier since my current retirement investments (e.g. Rollover TIRA, Roth IRA) are valued around 10% less than when I retired, almost 9 years ago (at age 59, currently age 68).

I've used those funds as my main source of income since I do not have a retirement pension nor yet filed for SS. I do have current income sources that cover around 25% of my current budgeted expenses - a small VA disability monthly benefit, along with a SPIA purchased at the time of my retirement with tax deferred funds outside of my retirement investments. That means that my portfolio has to cover 75% of my current expenses.

The addition of my age-70 SS (in just under two years), along with my current sources of income are projected to cover a bit more than 100% of budgeted expenses for the year, starting in 2018. Also, if I were to take dividends/distributions in cash rather than reinvest (as I do now), it would increase my income to around 125-130% of current expenses at that time.

The goal was to delay SS for the benefit of my wife (assuming I pass first) giving her an upward adjusted SS benefit based upon my claim. In addition, I am attempting to minimize excess RMD's at age 70.5 which would have been quite large without the drawdown, to the point of incurring additional surcharges for Medicare. By "excess RMD's", I mean those withdrawals required by current law - not necessarily needed to cover existing expenses. In 2018, I'm planning on just doing the withdrawal, pay the FIT (no state/local tax to worry about), and reinvest the proceeds.

Also, retiring in the spring of 2007 just before the impact of the 2008-09 "financial challenge" did impact returns over the period of time.

But heck, I'm not complaining. I (along with my wife) are still able to enjoy retirement as we wish, without any concerns related to financial matters.

FWIW,

- Ron
Last edited by Ron on Tue Jan 12, 2016 3:25 pm, edited 1 time in total.

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Re: How common is this [Have more money 10+ years into retirement]

Post by joebh » Tue Jan 12, 2016 2:49 pm

Ron wrote:But heck, I'm not complaining. I (along with my wife) are still able to enjoy retirement as we wish, without any concerns related to financial matters.
And that's all that really matters.

Congratulations! Sounds like you planned well.

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Re: How common is this [Have more money 10+ years into retirement]

Post by Orion » Tue Jan 12, 2016 7:19 pm

I retired in 2000 (which I've occasionally seen referred to as possibly the new worst time to retire for long term returns) but I'm up in nominal and real dollars. Some things that helped: I retired early and have a "optimistic" (or worst case financially) outlook on longevity so I used a 60 year SWR which I adjusted downward even more since I expected really poor performance from such a high market. I also had a small business which I expected to be gone by 2003ish, but it grew for a while and only now may be finally winding down. It only brings in $10-20K but that helps! If it lasts until I start taking Social Security that would be delightful but I'm not counting on it.

So, with small withdrawals and a long time frame, I don't think being up at time is unusual. I still have lots of time to spend it back down.
Offshore wrote:Question for retirees under the age of 65 (or those over 65 who retired at a younger age). What did you do about health insurance? It's expensive! Do you use Obamacare? ...
I guess I do "use Obamacare" though I'm not sure that I mean that the same way you do. I had been with the same private health insurer since 2000 and my premiums went up 20 to 22% every year. The first year of the new law, I got a notice that next year's premium was going up… 0% over the year before. And a few weeks later I got a check from the insurer that said that the Affordable Care act limited them to 20% profit margins and was retroactive to last year so they were required to send me this check due to being above that and they were required by the law to tell me why they sending the check. (That last part was pretty amusing.) So I guess I've been under "Obamacare" since then but as far as I can recall, I've always been over the limits for healthcare subsidies, which might be what you mean. I did later switch insurers and use the healthcare exchange which dropped my premiums ($100/mo or so), so I guess that's another bit of Obamacare. However, it's still just a "normal" private health insurance plan. "Obamacare" just made it easier to compare plans. Overall it seems a subtle but useful collection of tweaks to health insurance business rather than something dramatic to me. Perhaps at lower income levels it is more dramatic. You should definitely shop the exchanges if you haven't. You can check prices without signing up for anything. I was going to ignore them for the first year or two until a friend told me he and his wife saved over $200/month. (Just by finding a cheaper policy - not subsidies.)

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cfs
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Re: How common is this [Have more money 10+ years into retirement]

Post by cfs » Tue Jan 12, 2016 7:37 pm

Ron wrote: . . . my current retirement investments (e.g. Rollover TIRA, Roth IRA) are valued around 10% less than when I retired, almost 9 years ago . . . .
Good on you shipmate Ron!

You are doing great !!!!

Really.
~ Member of the Active Retired Force since 2014 ~

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munemaker
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Re: How common is this [Have more money 10+ years into retirement]

Post by munemaker » Tue Jan 12, 2016 8:34 pm

stemikger wrote:I know quite a few retirees that are 10 years or more into retirement and even with distributions, have more money in their account then when they retired. How many find themselves in this situation. Also would you care to share your asset allocation in retirement.

Steve
If you have generous government pension(s), I think it is very common.

If you are living off of your own investments, probably not so common.

dbr
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Re: How common is this [Have more money 10+ years into retirement]

Post by dbr » Tue Jan 12, 2016 8:49 pm

I noticed that if you go into FireCalc, enter a ten year retirement, select under "Investigate" that you get a spreadsheet of the results, you can see what would have happened to various portfolios in ten year periods up to as recently as 2005, etc. You might be surprised by the results -- or not.

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SeeMoe
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Re: How common is this [Have more money 10+ years into retirement]

Post by SeeMoe » Tue Jan 12, 2016 10:09 pm

20+ years into retirement and doing well . So well that I can afford to have a money manager take care of the chump change from now on while I concentrate on my golf game . So well that we live comfortably in a 5 star CCRC where we only have to decide which garden flower arrangement to choose for this year, and what to wear at Friday's dress up time for the Gala Dinner party,..Life is good, and Vanguard Group is a big part of our success getting to where we are today .
SeeMoe.. :greedy
"By gnawing through a dike, even a Rat can destroy a nation ." {Edmund Burke}

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1210sda
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Re: How common is this [Have more money 10+ years into retirement]

Post by 1210sda » Tue Jan 12, 2016 10:58 pm

Retired at end of 2001.

Half of this time I've been using the 3 fund portfolio. (60/40)

Our withdrawal rate at the start was 3.5%. Currently around 2%.

No Defined Benefit pension

Am now receiving soc sec

Portfolio at the end of 2015 is at 153% of the 2001 year end level(Nominal)

Portfolio at the end of 2015 is at 118% of the 2001 year end level(Real)

Funded our retirement for the past 14 years.

1210

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CABob
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Re: How common is this [Have more money 10+ years into retirement]

Post by CABob » Tue Jan 12, 2016 11:40 pm

The following is my portfolio balance after retiring in 2002 with the balance expressed as a percentage of the beginning value.
  • Year +/-
    2003 100%
    2004 137%
    2005 179%
    2006 168%
    2007 185%
    2008 187%
    2009 154%
    2010 181%
    2011 198%
    2012 204%
    2013 218%
    2014 233%
    2015 248%
    2016 247%
It has shown steady growth except for some problems in the 2007-2010 period.
Bob

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