Thoughts on spending in retirement

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Joined: Sat Jun 28, 2014 8:42 am

Thoughts on spending in retirement

Post by heerekj1 » Tue Jul 11, 2017 3:20 pm

I am 66.5 and have been retired for 1.5 years. We are in the fortunate position of having enough income to more than cover our expenses. The income includes pension and a SWR from my IRAs and later my SS. The expenses include lots of travel and optional purchases.

We seem to have a lot in our retirement funds and I have struggled with trying to figure out how much I can spend on major purchases like helping kids with down payments or adding a patio, etc. etc. I have decided I will keep a cumulative account of money that we could have spent but did not. Right now this is just a notation and do not have a separate account. I figure out the taxes I would have paid if I withdrew at the SWR and that is deducted from what income I have available.

Does that make sense to you? I want to be able to tell my wife or sons when they ask whether or not we can afford what they are asking. I want to feel comfortable but not be cheap.

Should I set up an actual separate account, do with the withdrawal, and pay the taxes. Currently I am in a 25% bracket with some Roth conversions and should be in a 33% bracket with SS and RMD's


John Z
Posts: 304
Joined: Sun Nov 14, 2010 5:42 pm

Re: Thoughts on spending in retirement

Post by John Z » Tue Jul 11, 2017 4:09 pm

I do exactly that: keep a running total of withdrawals @ 1% per quarter (of total IRAs) in my spreadsheet on the withdrawals tab. Don't need all the money so at least know what amounts I could withdraw when needed. A couple of times had a negative balance because of a couple large expenses but broke even and above within 2 quarters. Do this every quarter so know instantly where we stand on withdrawals. We only withdraw the money when needed.

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