Retirees: I'm not going to run out

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
User avatar
Topic Author
tennisplyr
Posts: 2351
Joined: Tue Jan 28, 2014 1:53 pm
Location: Sarasota, FL

Retirees: I'm not going to run out

Post by tennisplyr » Mon Apr 29, 2019 5:03 pm

For those of you retired, what age were/are you when you came to the realization that it's highly unlikely you would ever run out of money? How many years were you into retirement?
Those who move forward with a happy spirit will find that things always work out.

jebmke
Posts: 9851
Joined: Thu Apr 05, 2007 2:44 pm

Re: Retirees: I'm not going to run out

Post by jebmke » Mon Apr 29, 2019 5:04 pm

Technically, you can't know until you croak.

Practically, I knew well before I retired.
When you discover that you are riding a dead horse, the best strategy is to dismount.

dbr
Posts: 30799
Joined: Sun Mar 04, 2007 9:50 am

Re: Retirees: I'm not going to run out

Post by dbr » Mon Apr 29, 2019 5:05 pm

jebmke wrote:
Mon Apr 29, 2019 5:04 pm
Technically, you can't know until you croak.

Practically, I knew well before I retired.
ditto

User avatar
Sandtrap
Posts: 8476
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii No Ka Oi , N. Arizona

Re: Retirees: I'm not going to run out

Post by Sandtrap » Mon Apr 29, 2019 5:06 pm

tennisplyr wrote:
Mon Apr 29, 2019 5:03 pm
For those of you retired, what age were/are you when you came to the realization that it's highly unlikely you would ever run out of money? How many years were you into retirement?
Around 61-65. 5-8 years in.
But, I'm still not sure as I'm insecure. . . . . . .because. . . anything can happen. . . . . :shock:

It would be easier if I knew my expiration date.
j
Wiki Bogleheads Wiki: Everything You Need to Know

User avatar
LadyGeek
Site Admin
Posts: 57799
Joined: Sat Dec 20, 2008 5:34 pm
Location: Philadelphia
Contact:

Re: Retirees: I'm not going to run out

Post by LadyGeek » Mon Apr 29, 2019 5:10 pm

This thread is now in the Personal Finance (Not Investing) forum (retirement planning).
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.

elainet7
Posts: 347
Joined: Sat Dec 08, 2018 1:52 pm

Re: Retirees: I'm not going to run out

Post by elainet7 » Mon Apr 29, 2019 5:10 pm

we oversaved by 25%-not worried but its in the mind of probably every retiree

Fclevz
Posts: 417
Joined: Fri Mar 30, 2007 11:28 am

Re: Retirees: I'm not going to run out

Post by Fclevz » Mon Apr 29, 2019 5:15 pm

13 years into retirement and my portfolio is about three and a half times what it was when I retired. (nominal)
So I'm starting to feel relatively secure :D

Dandy
Posts: 6001
Joined: Sun Apr 25, 2010 7:42 pm

Re: Retirees: I'm not going to run out

Post by Dandy » Mon Apr 29, 2019 5:28 pm

Was retired in 2008 at age 60 modest pension. The market dropped soon after taking me from probably enough for say a 30 year retirement to probably not enough. Waited until 65 for additional small pension. Had about a 45/55 allocation which finally brought me to a decent level at that time. About age 68 I hit of Dr. Bernstein's idea of having 20+ years worth of drawdown in "safe" products. When I did that (safe to age 90). I realized I was in great shape. Full SS at 70 sealed the deal.

User avatar
mlebuf
Posts: 1915
Joined: Tue Feb 20, 2007 8:27 pm
Location: Paradise Valley, Arizona

Re: Retirees: I'm not going to run out

Post by mlebuf » Mon Apr 29, 2019 5:30 pm

Many of us know that financial experts recommend having a portfolio of 25 X annual spending, withdrawing no more than 4 percent per year starting at age 65 and adjusting future annual withdrawals for inflation. My opinion is that the vast majority of retirees who dogmatically follow those rules will have a lot of heirs smiling at their funerals.

My favorite article about spending down assets in retirement was written by Scott Burns:
https://assetbuilder.com/knowledge-cent ... onic-clock
Best wishes, | Michael | | Invest your time actively and your money passively.

shell921
Posts: 344
Joined: Fri Jul 06, 2018 5:13 pm

Re: Retirees: I'm not going to run out

Post by shell921 » Mon Apr 29, 2019 5:50 pm

I'm a retired teacher - a widow of 5 years.
My husband was a retired federal employee.
He retired at age 55 in 1995.
I retired in 2003 - when I was 55.
We had 11 years together -both retired - before he passed [unexpectedly ] in 2014.

I'm good -- for now. No mortgage and I have a retired teacher's pension + 80% of
my husband's pension and I can pay all my expenses plus even save some.
I have savings and an investment portfolio. STILL I worry about how much medical costs
will be increasing as well as gas, water, food etc......and how long I will live [ and be healthy ].

visualguy
Posts: 1602
Joined: Thu Jan 30, 2014 1:32 am

Re: Retirees: I'm not going to run out

Post by visualguy » Mon Apr 29, 2019 5:51 pm

mlebuf wrote:
Mon Apr 29, 2019 5:30 pm
Many of us know that financial experts recommend having a portfolio of 25 X annual spending, withdrawing no more than 4 percent per year starting at age 65 and adjusting future annual withdrawals for inflation. My opinion is that the vast majority of retirees who dogmatically follow those rules will have a lot of heirs smiling at their funerals.
The problem is that you don't know which camp you will fall into... The ones for whom this results in a big estate (or at least some estate) at the end, or the ones for whom this is not enough. Not sure if and how long-term care is factored into this "25X annual spending" business, for example.

delamer
Posts: 9324
Joined: Tue Feb 08, 2011 6:13 pm

Re: Retirees: I'm not going to run out

Post by delamer » Mon Apr 29, 2019 6:00 pm

Pre-retirement.

I would have kept working otherwise.

I understand that continuing to work may not be an option if someone retires due to poor health or a layoff. I was fortunate that I had the option. And doubly fortunate that I didn’t have to take it.

supersharpie
Posts: 730
Joined: Wed Dec 22, 2010 1:28 pm

Re: Retirees: I'm not going to run out

Post by supersharpie » Mon Apr 29, 2019 6:03 pm

It's impossible to "run out of money" thanks to Social Security.

EdNorton
Posts: 136
Joined: Wed Jan 02, 2019 11:11 am

Re: Retirees: I'm not going to run out

Post by EdNorton » Mon Apr 29, 2019 6:07 pm

The wife and I retired in 2016, ages 59 and 58. Both had small pensions and got health insurance through wife's employer, USPS. We withdrawal about $40k a year. Had $1.6 million when we retired, have $2.3 now, not counting home. I'm starting my to feel pretty comfortable.
Outside a dog, a book is man's best friend, inside a dog, it's too dark to read - Groucho

Broken Man 1999
Posts: 3484
Joined: Wed Apr 08, 2015 11:31 am

Re: Retirees: I'm not going to run out

Post by Broken Man 1999 » Mon Apr 29, 2019 6:10 pm

mlebuf wrote:
Mon Apr 29, 2019 5:30 pm
Many of us know that financial experts recommend having a portfolio of 25 X annual spending, withdrawing no more than 4 percent per year starting at age 65 and adjusting future annual withdrawals for inflation. My opinion is that the vast majority of retirees who dogmatically follow those rules will have a lot of heirs smiling at their funerals.

My favorite article about spending down assets in retirement was written by Scott Burns:
https://assetbuilder.com/knowledge-cent ... onic-clock
I have no idea how long our retirement portfolio will last. Even with increased spending, we are below our ability to spend. But, that increased ability is simply a reflection of this long-running bull market. At the present we are doing major and modest "one-of" home improvements. I figured now is the best time to do projects as the money is rolling in faster than it is rolling out.

Still, I just don't want to elevate our spending beyond what we are spending just for the sake of spending because we can. Some point in time will see lower equity prices, and we will be just fine as for the most part we have avoided spending that would continue paying for an elevated life style we have become accustomed to, not interested in that trap at all.

We might leave a big legacy, or we might be living in a nursing home on Medicaid. The future has not been revealed to me.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven than I shall not go. " -Mark Twain

SGM
Posts: 3050
Joined: Wed Mar 23, 2011 4:46 am

Re: Retirees: I'm not going to run out

Post by SGM » Mon Apr 29, 2019 6:15 pm

I had always planned on having walking away money. Two years before I started working part time I ran all the numbers. It looked good then and now 4 plus years after full retirement I am still confident.

I took SS at 70, completed Roth conversions over a few years of part time work and full retirement. We had two other annuities related to early employment and some real estate income. A small amount has been set aside for additional SPIAs at a later date. I am concerned about possible future inability to manage a portfolio and am trying to train my adult children to take ovef the reigns at some point or at least ride shotgun. :D

schachtw
Posts: 144
Joined: Mon Jul 06, 2015 6:15 pm

Re: Retirees: I'm not going to run out

Post by schachtw » Mon Apr 29, 2019 6:30 pm

I was confident of our financial circumstances going into retirement (4 years ago). I used all the available calculators, e.g., firecalc, Bigfoot’s RPM spreadsheet, MaxiFi, etc. All showing ample discretionary income to last well into old-old age. However, as we all know, nothing is guaranteed.

I still have difficulty with discretionary spending. I grew up in a blue collar, working class family. There was very little, if any extra money for my parents to spend.

For better or worse, those feelings and habits have stayed with me. Change is hard.

MarkRoulo
Posts: 143
Joined: Mon Jun 22, 2015 10:25 am

Re: Retirees: I'm not going to run out

Post by MarkRoulo » Mon Apr 29, 2019 7:13 pm

supersharpie wrote:
Mon Apr 29, 2019 6:03 pm
It's impossible to "run out of money" thanks to Social Security.
There *are* people who are not in the Social Security system.

California public school teachers, as an example, don't pay into Social Security and are not covered by it. One could imagine that the California state pensions getting into trouble would generate extra excitement because of this feature.

Dottie57
Posts: 7152
Joined: Thu May 19, 2016 5:43 pm
Location: Earth Northern Hemisphere

Re: Retirees: I'm not going to run out

Post by Dottie57 » Mon Apr 29, 2019 7:17 pm

If SS remains ( even with a 25% cut) I should end up just fine. It will cover my needs, and portfolio covers wants.

User avatar
JoeRetire
Posts: 3912
Joined: Tue Jan 16, 2018 2:44 pm

Re: Retirees: I'm not going to run out

Post by JoeRetire » Mon Apr 29, 2019 7:28 pm

tennisplyr wrote:
Mon Apr 29, 2019 5:03 pm
For those of you retired, what age were/are you when you came to the realization that it's highly unlikely you would ever run out of money? How many years were you into retirement?
I knew in my 50s. I retired at 60.

I wouldn't have retired unless I realized that it was highly unlikely that we would ever run out of money.
Don't be a lemming.

User avatar
Peter Foley
Posts: 4947
Joined: Fri Nov 23, 2007 10:34 am
Location: Lake Wobegon

Re: Retirees: I'm not going to run out

Post by Peter Foley » Mon Apr 29, 2019 7:33 pm

I retired in May of 2012. Based on stock market returns I knew we would be okay by the end of 2013. We were fortunate to have a very good sequence of returns.

User avatar
Doom&Gloom
Posts: 3025
Joined: Thu May 08, 2014 3:36 pm

Re: Retirees: I'm not going to run out

Post by Doom&Gloom » Mon Apr 29, 2019 7:39 pm

mlebuf wrote:
Mon Apr 29, 2019 5:30 pm
Many of us know that financial experts recommend having a portfolio of 25 X annual spending, withdrawing no more than 4 percent per year starting at age 65 and adjusting future annual withdrawals for inflation. My opinion is that the vast majority of retirees who dogmatically follow those rules will have a lot of heirs smiling at their funerals.

My favorite article about spending down assets in retirement was written by Scott Burns:
https://assetbuilder.com/knowledge-cent ... onic-clock
Thanks for the link. Good read. It seemed to detail my poorly thought-out theory to me.

User avatar
GerryL
Posts: 2506
Joined: Fri Sep 20, 2013 11:40 pm

Re: Retirees: I'm not going to run out

Post by GerryL » Mon Apr 29, 2019 7:40 pm

Retired at ~66.
Figured out about a year earlier that I am very unlikely to run out of funds. This knowledge makes having fun even funner.

Rus In Urbe
Posts: 520
Joined: Sat Dec 09, 2017 2:12 pm

Re: Retirees: I'm not going to run out

Post by Rus In Urbe » Mon Apr 29, 2019 7:42 pm

I knew about four years ago that we could make it.
I've worked for another four years (projects at my job I wanted to finish).
Now I'm super sure we'll be fine, with several different levers to pull "just in case."
Retiring in December.
:sharebeer
I'd like to live as a poor man with lots of money. ~Pablo Picasso

scrabbler1
Posts: 2428
Joined: Fri Nov 20, 2009 2:39 pm

Re: Retirees: I'm not going to run out

Post by scrabbler1 » Mon Apr 29, 2019 7:44 pm

I knew 6 months before I retired in 2008 at age 45. That was wen I visited my local Fido office and my (unpaid) Account executive ran my numbers through Fido's RIP program and it showed how my portfolio would explode in value when my frozen pension and SS kicked in.

ByThePond
Posts: 162
Joined: Thu Dec 31, 2015 11:21 am

Re: Retirees: I'm not going to run out

Post by ByThePond » Mon Apr 29, 2019 8:15 pm

I knew 2 or 3 years ago that my timeline would work before I pulled the plug this past year. I jumped the gun a bit due to a minor health issue and the realization that no one is getting younger. The great bull market of recent made not running out especially certain, and I took some chips off the table to lock it in. Still ahead of predictions at this point.

User avatar
Watty
Posts: 17624
Joined: Wed Oct 10, 2007 3:55 pm

Re: Retirees: I'm not going to run out

Post by Watty » Mon Apr 29, 2019 8:17 pm

tennisplyr wrote:
Mon Apr 29, 2019 5:03 pm
For those of you retired, what age were/are you when you came to the realization that it's highly unlikely you would ever run out of money? How many years were you into retirement?
By the time I voluntarily retired I was pretty sure that I would not run out of money, or else I would not have retired. :wink:

If things go badly I could reduce my spending by 10 or even 20% without much real hardship by cutting back on things like travel. "Running out money" should not be all that hard to avoid as long as I am willing to reduce my spending if I need to. Even then I could still do things like drive places in the US instead of taking more expensive trips so that would not be a terrible hardship.

The median US household income is about $62K so with a paid off house and Social Security it does not take a lot of other income to at least match that lifestyle.

It helps that I live in a relatively low cost of living area and have a paid off house so my Social Security should be enough to pay for a very modest lifestyle if I needed it to.

Of course long term care is a big unknown but since I live in a lower cost area LTC costs are also lower

User avatar
JoeRetire
Posts: 3912
Joined: Tue Jan 16, 2018 2:44 pm

Re: Retirees: I'm not going to run out

Post by JoeRetire » Mon Apr 29, 2019 8:31 pm

Do a lot of folks voluntarily retire when it's only kinda likely (or even completely unsure) that they won't run out of money? That would be surprising.
Don't be a lemming.

delamer
Posts: 9324
Joined: Tue Feb 08, 2011 6:13 pm

Re: Retirees: I'm not going to run out

Post by delamer » Mon Apr 29, 2019 8:51 pm

JoeRetire wrote:
Mon Apr 29, 2019 8:31 pm
Do a lot of folks voluntarily retire when it's only kinda likely (or even completely unsure) that they won't run out of money? That would be surprising.
Seems like the “voluntary” is key.

According to this about 60% of retirees stopped working before they expected to do so: https://www.usatoday.com/story/money/20 ... /28371099/

User avatar
tc101
Posts: 3212
Joined: Tue Feb 20, 2007 3:18 pm
Location: Atlanta - Retired in 2004 at age 54

Re: Retirees: I'm not going to run out

Post by tc101 » Mon Apr 29, 2019 8:57 pm

I retired when I was 58. Figured I would probably not run out and was willing to take the chance. When I was about 65 it became obvious that it would be super extremely unlikely that I would ever run out. I'm now 69.
. | The most important thing you should know about me is that I am not an expert.

User avatar
bengal22
Posts: 1848
Joined: Sat Dec 03, 2011 6:20 pm
Location: Ohio

Re: Retirees: I'm not going to run out

Post by bengal22 » Mon Apr 29, 2019 8:58 pm

I knew that I would never run out of money in retirement before I even heard of the concept of running out of money in retirement. With the existence of social security one just has to adjust ones spending to subsist. I do AARP taxes and see many people that live on that alone. Now the question of maintaining an expected lifestyle throughout retirement is another topic
"Earn All You Can; Give All You Can; Save All You Can." .... John Wesley

User avatar
camillus
Posts: 600
Joined: Thu Feb 28, 2013 9:55 pm

Re: Retirees: I'm not going to run out

Post by camillus » Mon Apr 29, 2019 9:04 pm

For the bogleheads crowd, as long as they have all their faculties, I would say that there are many options and decisions that take place before one "runs out of money." There are "levers to pull" as was mentioned above: decrease spending, reverse mortgage, revise expectations re inheritances, etc.

This is the least-likeliest crowd (in human history?) to run out of money.

RadAudit
Posts: 3613
Joined: Mon May 26, 2008 10:20 am
Location: Second star on the right and straight on 'til morning

Re: Retirees: I'm not going to run out

Post by RadAudit » Mon Apr 29, 2019 10:02 pm

I'm 72. Coming up on nine years in retirement. I retired before I knew if I'd run out of money or not. I still don't know. Too many unknowns. Too many ways for things to go South for folks I feel an obligation to help for as long as they need. It was just time to leave.
FI is the best revenge. LBYM. Invest the rest. Stay the course. - PS: The cavalry isn't coming, kids. You are on your own.

drawpoker
Posts: 2767
Joined: Mon May 19, 2014 6:33 pm
Location: Delmarva

Re: Retirees: I'm not going to run out

Post by drawpoker » Mon Apr 29, 2019 11:45 pm

bengal22 wrote:
Mon Apr 29, 2019 8:58 pm
.....With the existence of social security one just has to adjust ones spending to subsist. I do AARP taxes and see many people that live on that alone........
Yes, but please caution those folks who have pets. Don't linger too long in the cat food aisle at the supermarket.

Recently, I did just that, studying the many labels of Friskies for too long. Had to hunt down a certain flavor for my finicky bunch. An older, kindly-looking gentleman apparently had been watching me.
He quietly approached, looking around to see if anyone was nearby to hear, then leaned in and whispered:

"The meaty bits with gravy tastes the best"


:P :P :P :P :P

basspond
Posts: 1252
Joined: Wed Nov 27, 2013 4:01 am

Re: Retirees: I'm not going to run out

Post by basspond » Tue Apr 30, 2019 2:09 am

At least 5 years before I retired at 55.

User avatar
JoeRetire
Posts: 3912
Joined: Tue Jan 16, 2018 2:44 pm

Re: Retirees: I'm not going to run out

Post by JoeRetire » Tue Apr 30, 2019 5:46 am

delamer wrote:
Mon Apr 29, 2019 8:51 pm
JoeRetire wrote:
Mon Apr 29, 2019 8:31 pm
Do a lot of folks voluntarily retire when it's only kinda likely (or even completely unsure) that they won't run out of money? That would be surprising.
Seems like the “voluntary” is key.

According to this about 60% of retirees stopped working before they expected to do so: https://www.usatoday.com/story/money/20 ... /28371099/
I understand the "stopped before they expected/wanted to" part. Sometimes you just have to play the hand that is dealt.

But it appears that some here decided to just make the jump to retirement before they were convinced that they wouldn't ever run out of money. That does surprise me. I don't think I could have done that.
Don't be a lemming.

HobbesMB
Posts: 25
Joined: Mon Sep 18, 2017 1:36 pm

Re: Retirees: I'm not going to run out

Post by HobbesMB » Tue Apr 30, 2019 9:17 am

We've had a historic bull market run. Lots of people who might have had legitimate concerns when retiring in the last 10 years have been soothed by terrific market returns. It's getting increasingly difficult to draw any conclusions about retirement viability based on anecdotal evidence from the cohort who retired in the past decade.

It's terrific for them to have that sequence of return risk mitigated so nicely (I'm envious), but future retirees can't draw reasonable comparisons with that experiential info. I'm planning to retire in 2 years and I unfortunately can't look upon the experiences of those recent retirees as informative for my planning.

fposte
Posts: 1727
Joined: Mon Sep 02, 2013 1:32 pm

Re: Retirees: I'm not going to run out

Post by fposte » Tue Apr 30, 2019 9:34 am

MarkRoulo wrote:
Mon Apr 29, 2019 7:13 pm
supersharpie wrote:
Mon Apr 29, 2019 6:03 pm
It's impossible to "run out of money" thanks to Social Security.
There *are* people who are not in the Social Security system.

California public school teachers, as an example, don't pay into Social Security and are not covered by it. One could imagine that the California state pensions getting into trouble would generate extra excitement because of this feature.
There's an interesting article on the SSA site that breaks down the stats on who's not eligible for Social Security. It was about 4% of people aged 62-84 in 2010, and noncovered workers (those in state and other government systems with alternatives) were only a small fraction of those 4%; most of them were late-arriving immigrants or "infrequent workers."

drawpoker
Posts: 2767
Joined: Mon May 19, 2014 6:33 pm
Location: Delmarva

Re: Retirees: I'm not going to run out

Post by drawpoker » Tue Apr 30, 2019 12:01 pm

MarkRoulo wrote:
Mon Apr 29, 2019 7:13 pm
.....California public school teachers, as an example, don't pay into Social Security and are not covered by it.
Majority of jobs for the city of Chicago, also, are civil service positions with a pension, no Social Security eligibility.

User avatar
HomerJ
Posts: 13404
Joined: Fri Jun 06, 2008 12:50 pm

Re: Retirees: I'm not going to run out

Post by HomerJ » Tue Apr 30, 2019 12:06 pm

JoeRetire wrote:
Mon Apr 29, 2019 7:28 pm
tennisplyr wrote:
Mon Apr 29, 2019 5:03 pm
For those of you retired, what age were/are you when you came to the realization that it's highly unlikely you would ever run out of money? How many years were you into retirement?
I knew in my 50s. I retired at 60.

I wouldn't have retired unless I realized that it was highly unlikely that we would ever run out of money.
This. EVERY voluntary retiree should feel it's highly unlikely they are going to run out of money.

Otherwise, it would not be smart to retire.
The J stands for Jay

User avatar
HomerJ
Posts: 13404
Joined: Fri Jun 06, 2008 12:50 pm

Re: Retirees: I'm not going to run out

Post by HomerJ » Tue Apr 30, 2019 12:09 pm

And "running out of money" means different things to different people.

I don't yet feel like I am extremely likely to maintain my desired retirement spending, which is why I'm still working.

But even now, years before retirement, I'm extremely likely to never "run out of money". I could retire today, and have a very solid retirement with no money worries.

Just wouldn't be able to travel as much, or own two homes, so I keep working for the extra luxuries that will keep my wife happy. :)
The J stands for Jay

DrGoogle2017
Posts: 2528
Joined: Mon Aug 14, 2017 12:31 pm

Re: Retirees: I'm not going to run out

Post by DrGoogle2017 » Tue Apr 30, 2019 12:13 pm

It’s hard to tell at this stage but I a bit more optimistic about the future.

User avatar
LiveSimple
Posts: 1409
Joined: Thu Jan 03, 2013 7:55 am

Re: Retirees: I'm not going to run out

Post by LiveSimple » Tue Apr 30, 2019 12:22 pm

Dottie57 wrote:
Mon Apr 29, 2019 7:17 pm
If SS remains ( even with a 25% cut) I should end up just fine. It will cover my needs, and portfolio covers wants.
Same here

Mr.BB
Posts: 1058
Joined: Sun May 08, 2016 10:10 am

Re: Retirees: I'm not going to run out

Post by Mr.BB » Tue Apr 30, 2019 1:01 pm

The difference between bogleheads and most other people is this type of conversation.
"We are what we repeatedly do. Excellence, then, is not an act, but a habit."

User avatar
White Coat Investor
Posts: 14269
Joined: Fri Mar 02, 2007 9:11 pm
Location: Greatest Snow On Earth

Re: Retirees: I'm not going to run out

Post by White Coat Investor » Tue Apr 30, 2019 1:38 pm

jebmke wrote:
Mon Apr 29, 2019 5:04 pm
Technically, you can't know until you croak.

Practically, I knew well before I retired.
Me too. Either there would have to be some terrible losses or my spending would have to dramatically increase and I'm still a long way from retiring.

Not sure which scenario is more likely, probably the second.
1) Invest you must 2) Time is your friend 3) Impulse is your enemy | 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course

btenny
Posts: 5144
Joined: Sun Oct 07, 2007 6:47 pm

Re: Retirees: I'm not going to run out

Post by btenny » Tue Apr 30, 2019 2:31 pm

Running out of Money is the wrong issue for me and many others here I suspect. We all wonder (and will until the end) if things go really wrong will we have to cut back. We are not really rich. Just comfortable. We know we have enough to live low cost forever but want to live a little larger in retirement. So we spend more because we can.

When I retired I knew I did not have enough cash flow to not work without changing my lifestyle. I knew that my kids were grown and we were going to be empty nesters in a year. I also knew I had a pension and SS that I could draw in a few years. My issue was big house expenses and equity tied up in the house and other investment real estate.

It took me four years to resolve these issues and convert to a self managed income producing portfolio. It helped when the Dot Com recession ended and I fired my investment adviser. Until then I was not sure I could stay retired. Then I was fine for seven more years until 2008/9. I wondered if I might have to cut back on spending when that mess happened. I suffered modest losses but wondered if things were going to get worse or recover. Things worked out because I stayed the course...

So I am sure I have enough but I am still not sure that I might not have to cut back some if the world crashes......

Good Luck.

JGoneRiding
Posts: 1808
Joined: Tue Jul 15, 2014 3:26 pm

Re: Retirees: I'm not going to run out

Post by JGoneRiding » Tue Apr 30, 2019 11:07 pm

visualguy wrote:
Mon Apr 29, 2019 5:51 pm
mlebuf wrote:
Mon Apr 29, 2019 5:30 pm
Many of us know that financial experts recommend having a portfolio of 25 X annual spending, withdrawing no more than 4 percent per year starting at age 65 and adjusting future annual withdrawals for inflation. My opinion is that the vast majority of retirees who dogmatically follow those rules will have a lot of heirs smiling at their funerals.
The problem is that you don't know which camp you will fall into... The ones for whom this results in a big estate (or at least some estate) at the end, or the ones for whom this is not enough. Not sure if and how long-term care is factored into this "25X annual spending" business, for example.
The thing is it is enough for several years of LTC and if you are significant aged and already paid for time in nursing care you arent likely to actually notice the shift to Medicare. There will be no change when this happens for my grand ma in a couple of months. (4 years self pay)

HIinvestor
Posts: 1833
Joined: Tue Apr 08, 2014 3:23 am

Re: Retirees: I'm not going to run out

Post by HIinvestor » Wed May 01, 2019 1:04 am

We believe we have adequate funds for our needs and most of our wants but who knows how long any of us will need 24/7 skilled nursing care and how much it will cost by the time we need it.

We are enjoying traveling and dining out now, while we can and enjoy it. We figure at some point we may not be as interested or able. We hope we are leaving enough to help our kids and any grandkids.

User avatar
LilyFleur
Posts: 742
Joined: Fri Mar 02, 2018 10:36 pm

Re: Retirees: I'm not going to run out

Post by LilyFleur » Wed May 01, 2019 1:25 am

I retired two years ago. This year, my Schwab guy ran two scenarios for me. In one, I have a comfortable income and preserve some capital to leave to my children. In the second scenario, I spend $20,000 a year less and preserve all the capital to leave to my children. I am not rich but I am grateful.

User avatar
JoeRetire
Posts: 3912
Joined: Tue Jan 16, 2018 2:44 pm

Re: Retirees: I'm not going to run out

Post by JoeRetire » Wed May 01, 2019 5:48 am

HomerJ wrote:
Tue Apr 30, 2019 12:09 pm
And "running out of money" means different things to different people.

I don't yet feel like I am extremely likely to maintain my desired retirement spending, which is why I'm still working.

But even now, years before retirement, I'm extremely likely to never "run out of money". I could retire today, and have a very solid retirement with no money worries.

Just wouldn't be able to travel as much, or own two homes, so I keep working for the extra luxuries that will keep my wife happy. :)
For me, that's exactly the right approach.

Have goals. Work toward those goals. Don't retire if you aren't convinced that your goals will be met.

Part of our goals is never running out of money. Part of our goals is being able to live the lifestyle we want. Part of our goals is never being a burden to our children. And of course the most important part of my goals is keeping my wife happy. :happy
Don't be a lemming.

Post Reply