Retired in a bear market

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lws
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Re: Retired in a bear market

Post by lws »

Retired 12 years.
Enjoying the gift of health and vigor.
Retirement was planned a long time ago during accumulation.
Proceeding according to goals and risk tolerance.
Behavior is set by those.
Market will recover but recovery period is unknown.
This time is not different.
Wanderingwheelz
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Re: Retired in a bear market

Post by Wanderingwheelz »

Leesbro63 wrote: Thu Sep 22, 2022 7:40 am
JoeRetire wrote: Thu Sep 22, 2022 7:34 am
Wanderingwheelz wrote: Thu Sep 22, 2022 7:30 amIt’s ironic, in a way, that so many people who were meticulous planners while accumulating, fail so miserably when they are tasked with sticking with their retirement plan. I bet I will too.
I guess I don't consider spending what you want when you want, "failing so miserably". Nobody is requiring that you "stick to your retirement plan".

If you have enough saved, you can do what makes you happy. Shouldn't that be your goal?
I agree with this. Which means I disagree with the common thinking that spending more yields more happiness. I'm just fine to die with a pile leftover, because it means I had extra security while I was here. And assuming death taxes don't get too punitive, I'm OK with leaving a pile. It's OK if my offspring get it.
While it may be true that spending more doesn’t yield more happiness (which of course it does right up until the point it doesn’t, and everyone has a different tipping point besides), I don’t know if that’s the widely held view on this forum since so many people have big ideas about how lavishly they’re going to live/spend in retirement, and then don’t do it for various reasons.

The more important point on a forum such as this is that HAVING more money doesn’t yield more happiness, again, after a tipping point where one has ENOUGH.
placeholder
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Re: Retired in a bear market

Post by placeholder »

JoeRetire wrote: Thu Sep 22, 2022 6:01 am We spend what we want when we want, but still don't hit that amount. We don't withdraw any specific amount per year just to match some formal withdrawal method. I suspect we are doing exactly what most folks do in real life.
I agree but in my case I have a pension so right now I'm not drawing anything from the portfolio and will probably start social security in a year when I hit full retirement age so it will depend a bit on how inflation does over the next few to see how the pension holds up.
Rd123123
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Re: Retired in a bear market

Post by Rd123123 »

Ana-Maria57 wrote: Tue Sep 20, 2022 11:08 am I know the conventional wisdom is that the market recovers following a large downturn. But it's hard to see any good economic news on the horizon. Anyone think that traditional approaches to investing won't hold? In other words "This time it really is different."
For those of us who are already retired with a 25-30 year time frame, how do we look at this long term? Do the old monte carlo calculators provide useful information?
For those taking RMD's, the required withdrawals are likely to be smaller next year.
Tax rates rising, cost of living higher, mortgage rates, health care inflation and pensions and annuities that do not keep up with inflation impact our long term financial planning.

Anyone want to weigh in about changes you are making to your overall retirement planning?

Thanks!!
My dad retired in 2000 at 64 years old, and for the most part was 100% Vanguard S&P 500 or Vanguard Total Stock Market Index until I took on management of his account two years ago. He and my mom didn't need to draw from his investments in the early retirement years, and then oncehis RMD's kicked in most of the RMD went back into the stock market in taxable brokerages. Lived simply, traveled about 3-5 months out of each year. So they have weathered 9/11, the dot com crash, the 2008 financial crisis, and COVID-19, and my dad stuck to his simple plan -- 100% stock index funds.

I don't necessarily recommend my dad's investing plan, although it worked out well for him. They could afford to live off of social security and savings and leave the investments alone. My point is just that he had a reasonable plan based on my parents' financial needs-- -- and he stuck to his plan through down and up periods in the market.

I don't think "this time it really is different." Every downturn has its own unique character as well as parallels to previous historical time periods. If you're in the USA, the USA is likely to maintain its' status as "the best house in a bad neighborhood" even during a global downturn.
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JoeRetire
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Re: Retired in a bear market

Post by JoeRetire »

placeholder wrote: Thu Sep 22, 2022 4:05 pm
JoeRetire wrote: Thu Sep 22, 2022 6:01 am We spend what we want when we want, but still don't hit that amount. We don't withdraw any specific amount per year just to match some formal withdrawal method. I suspect we are doing exactly what most folks do in real life.
I agree but in my case I have a pension so right now I'm not drawing anything from the portfolio and will probably start social security in a year when I hit full retirement age so it will depend a bit on how inflation does over the next few to see how the pension holds up.
Sounds good.
It sounds like you don't depend on social security benefits. Why don't you delay until 70 in that case?
Check out https://opensocialsecurity.com/
Oh, noooooo! I'm so sorry, it's the moops! The correct answer is 'the moops'.
placeholder
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Re: Retired in a bear market

Post by placeholder »

JoeRetire wrote: Fri Sep 23, 2022 6:35 am Sounds good.
It sounds like you don't depend on social security benefits. Why don't you delay until 70 in that case?
For a single person social security is actuarially neutral so it's not a free lunch to wait because you have to outlive the catch-up period but I have time to consider that.
Houdini563
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Re: Retired in a bear market

Post by Houdini563 »

Was going to retire this year. It appears my employer got wind of this and increased my salary $20,000 and gave me a $60,000 bonus. AND the market cratered.

So now I’m thinking Q3-4 next year. Hopefully the economy gets back on track and I receive another $60,000 bonus!

I decided to spend some of my bank savings do paid off my mortgage, bought a new Mazda SUV for me which will be my retirement car (used my bonus $) and bought a new Mercedes 300 SUV for my wife. So now what was $2,160,000 of total “retirement” savings I know have $1,920,000. I’m not sweating it. I have about $750,000 of this in CDs, Fixed IRA and cash. The remainder is in three mutual funds predominately VWIAX.

EVERYTHING will bounce back. I am confident when I finally do decide to retire I’ll be back up to my original total amount.
michaeljc70
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Re: Retired in a bear market

Post by michaeljc70 »

Houdini563 wrote: Fri Sep 23, 2022 7:06 pm Was going to retire this year. It appears my employer got wind of this and increased my salary $20,000 and gave me a $60,000 bonus. AND the market cratered.

So now I’m thinking Q3-4 next year. Hopefully the economy gets back on track and I receive another $60,000 bonus!

I decided to spend some of my bank savings do paid off my mortgage, bought a new Mazda SUV for me which will be my retirement car (used my bonus $) and bought a new Mercedes 300 SUV for my wife. So now what was $2,160,000 of total “retirement” savings I know have $1,920,000. I’m not sweating it. I have about $750,000 of this in CDs, Fixed IRA and cash. The remainder is in three mutual funds predominately VWIAX.

EVERYTHING will bounce back. I am confident when I finally do decide to retire I’ll be back up to my original total amount.
Sounds like you're well situated and delaying retirement has paid off. My biggest regret of retiring before 2020 was missing the work from home (which obviously couldn't have been foreseen). I worked from home 1-2 days a week when I was working...but 5 days a week would have been heaven. I had a client many years ago that had no office space so I worked from home 5 days a week then.
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JoeRetire
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Re: Retired in a bear market

Post by JoeRetire »

placeholder wrote: Fri Sep 23, 2022 5:34 pm
JoeRetire wrote: Fri Sep 23, 2022 6:35 am Sounds good.
It sounds like you don't depend on social security benefits. Why don't you delay until 70 in that case?
For a single person social security is actuarially neutral so it's not a free lunch to wait because you have to outlive the catch-up period but I have time to consider that.
It was designed to be actuarially neutral, but that was in the past. Now it's not quite neutral.

Either way, you are an individual, not an average. You may be on track to die early, or to live a very long life. Use https://opensocialsecurity.com/ and explore the different mortality table settings, in particular the "assumed age at death" choice to more closely reflect your particular situation.
Oh, noooooo! I'm so sorry, it's the moops! The correct answer is 'the moops'.
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JoeRetire
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Re: Retired in a bear market

Post by JoeRetire »

michaeljc70 wrote: Fri Sep 23, 2022 7:16 pmMy biggest regret of retiring before 2020 was missing the work from home (which obviously couldn't have been foreseen). I worked from home 1-2 days a week when I was working...but 5 days a week would have been heaven. I had a client many years ago that had no office space so I worked from home 5 days a week then.
So why don't you go back to heaven/work... from home?
Oh, noooooo! I'm so sorry, it's the moops! The correct answer is 'the moops'.
michaeljc70
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Re: Retired in a bear market

Post by michaeljc70 »

JoeRetire wrote: Sat Sep 24, 2022 6:54 am
placeholder wrote: Fri Sep 23, 2022 5:34 pm
JoeRetire wrote: Fri Sep 23, 2022 6:35 am Sounds good.
It sounds like you don't depend on social security benefits. Why don't you delay until 70 in that case?
For a single person social security is actuarially neutral so it's not a free lunch to wait because you have to outlive the catch-up period but I have time to consider that.
It was designed to be actuarially neutral, but that was in the past. Now it's not quite neutral.

Either way, you are an individual, not an average. You may be on track to die early, or to live a very long life. Use https://opensocialsecurity.com/ and explore the different mortality table settings, in particular the "assumed age at death" choice to more closely reflect your particular situation.
For just about everyone, it is a guessing game. I had one grandparent die in their 70s, one in their 80s, and two in their 90s. So how long will I live? I had a close friend collect at 62 because both of his parents died very young. But they died of non-hereditary diseases.

One thing I think some people overlook when claiming SS is taxes. This is especially true if you get an ACA subsidy since your income 62-64 will affect your subsidy.
michaeljc70
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Re: Retired in a bear market

Post by michaeljc70 »

JoeRetire wrote: Sat Sep 24, 2022 6:56 am
michaeljc70 wrote: Fri Sep 23, 2022 7:16 pmMy biggest regret of retiring before 2020 was missing the work from home (which obviously couldn't have been foreseen). I worked from home 1-2 days a week when I was working...but 5 days a week would have been heaven. I had a client many years ago that had no office space so I worked from home 5 days a week then.
So why don't you go back to heaven/work... from home?
Two reasons: I don't need the money and I worked in a highly specialized job that no one [likely] would hire me for after being out of it for 6 years.
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JoeRetire
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Re: Retired in a bear market

Post by JoeRetire »

michaeljc70 wrote: Sat Sep 24, 2022 7:17 am
JoeRetire wrote: Sat Sep 24, 2022 6:56 am
michaeljc70 wrote: Fri Sep 23, 2022 7:16 pmMy biggest regret of retiring before 2020 was missing the work from home (which obviously couldn't have been foreseen). I worked from home 1-2 days a week when I was working...but 5 days a week would have been heaven. I had a client many years ago that had no office space so I worked from home 5 days a week then.
So why don't you go back to heaven/work... from home?
Two reasons: I don't need the money and I worked in a highly specialized job that no one [likely] would hire me for after being out of it for 6 years.
I know lots of companies that are short of help these days. Perhaps not for your job.

Too bad. It's a shame to miss out on heaven.
Oh, noooooo! I'm so sorry, it's the moops! The correct answer is 'the moops'.
michaeljc70
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Re: Retired in a bear market

Post by michaeljc70 »

JoeRetire wrote: Sat Sep 24, 2022 7:19 am
michaeljc70 wrote: Sat Sep 24, 2022 7:17 am
JoeRetire wrote: Sat Sep 24, 2022 6:56 am
michaeljc70 wrote: Fri Sep 23, 2022 7:16 pmMy biggest regret of retiring before 2020 was missing the work from home (which obviously couldn't have been foreseen). I worked from home 1-2 days a week when I was working...but 5 days a week would have been heaven. I had a client many years ago that had no office space so I worked from home 5 days a week then.
So why don't you go back to heaven/work... from home?
Two reasons: I don't need the money and I worked in a highly specialized job that no one [likely] would hire me for after being out of it for 6 years.
I know lots of companies that are short of help these days. Perhaps not for your job.

Too bad. It's a shame to miss out on heaven.
I may have overstated "heaven". :shock: What I meant is if I had to work I do really like working from home. If I knew the work from home was coming, I may have held on to pad my portfolio.
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JoeRetire
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Re: Retired in a bear market

Post by JoeRetire »

michaeljc70 wrote: Sat Sep 24, 2022 7:38 am I may have overstated "heaven". :shock: What I meant is if I had to work I do really like working from home. If I knew the work from home was coming, I may have held on to pad my portfolio.
Got it.

After I retired, I was asked to help out my successor. I did so for a year, working two 8 hour days per week, doing only the "fun" parts of my previous job. I thoroughly enjoyed it.

But I didn't enjoy it enough to go out and look for a similar job. I'm enjoying retirement too much.
Oh, noooooo! I'm so sorry, it's the moops! The correct answer is 'the moops'.
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