Retirement funding

[glen]

I highly recommend retirement when you can afford it. Love every day

[HogHunter34]

But isn’t it still guessing when I have to guess a rate of return to input and guess an inflation number?

I think most of the answers given are well thought out. A few are a bit sarcastic but that’s part of the fun.

I was curious how many planned to use their nest egg to live off of/use it up vs those that are just planning to live off the proceeds the nest egg produces. I’m in the later group and it seems to be the majority based on the answers given so far. Not sure there is a right or wrong way to do it.


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When you say proceeds from your nest egg you basically are saying you plan to have enough principal from retirement savings to live off the dividend payout?
If so, curious how you plan to go about that? Dividend income from stock, ETFs, REITS?

[Dejashoot]

When you say proceeds from your nest egg you basically are saying you plan to have enough principal from retirement savings to live off the dividend payout?
If so, curious how you plan to go about that? Dividend income from stock, ETFs, REITS?

My plan at retirement (8-10 years from now)
New Truck, suv and camper paid off
$0 debt
3 years living expenses in cash
3 years property tax in cash
5 years worth of health insurance saved
Dividend paying stocks/investments
Wife’s pension
My SS starting at 62

Goal is to never touch investments and leave several million to kids and grandkids. Wish I would have started working the plan seriously 10 years ago. The question for me is will my monthly income be enough... Worst case I do some consulting to make extra cash. I’m calculating 85% last working year expenditures as my needed income. I can not take a vacation or skip a casino trip on a slower year.

I’m writing this from Kauai so it isn’t like I’m not living today to make it happen.

I’m funding all of these now and working this plan like it’s a job.

[Huntingfool]

[QUOTE=rtp;16236254]But isn’t it still guessing when I have to guess a rate of return to input and guess an inflation number?


What it lets the individual do is plug in several different assumed rates of return on their money along with several estimates on inflation.

So for example if you plug in 4% average rate of return on your investments it will determine how long your money will last. If it does not last to your life expectancy then you know that you either need to spend less or go for a higher investment return (more in the market). If it does last at 4% then you know you do not have to be as aggressive with your investments.

When I run mine once a year I plug in an assumed return of 4, 6, and 8% return coupled with inflation at 2,4,6%.

Of course it is not exact to the dollar or year but it certainly provides a reasonable guideline for a person's situation -

[rtp]

I highly recommend retirement when you can afford it. Love every day

You aint lyin"! Ive told many people, I dont know how I ever had time for a job.

[HogHunter34]

My plan at retirement (8-10 years from now)
New Truck, suv and camper paid off
$0 debt
3 years living expenses in cash
3 years property tax in cash
5 years worth of health insurance saved
Dividend paying stocks/investments
Wife’s pension
My SS starting at 62

Goal is to never touch investments and leave several million to kids and grandkids. Wish I would have started working the plan seriously 10 years ago. The question for me is will my monthly income be enough... Worst case I do some consulting to make extra cash. I’m calculating 85% last working year expenditures as my needed income. I can not take a vacation or skip a casino trip on a slower year.

I’m writing this from Kauai so it isn’t like I’m not living today to make it happen.

I’m funding all of these now and working this plan like it’s a job.

The $0 debt is smart
On health insurance saved what do you mean exactly? Just cash savings to cover healthcare expenses? Is this based on not having health insurance or a private policy?

[rtp]

When you say proceeds from your nest egg you basically are saying you plan to have enough principal from retirement savings to live off the dividend payout?
If so, curious how you plan to go about that? Dividend income from stock, ETFs, REITS?

Yes. And add bonds to the mix in a normal environment.

[Gumbo Man]

Yes. And add bonds to the mix in a normal environment.

Buuuuuut what is the new “ normal” gonna be? That’s the million dollar question. Literally!!

[rtp]

[emoji848][emoji33]


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[TeamAmerica]

Some of you may want to look into backdoor roth IRA conversions. While the market it down, if you have the cash to pay the taxes now on a lower gain and get taxed at the trump tax rates which may be the lowest they will be for some time, definitely worth a look. roths don't have the RMDs that 401k and traditional IRAs have.

*not a financial advisor*

[Arrowsmith]

We retired in January and May 2020. Still a decent chunk in Mutual Funds, although that is not doing well, but a lot in Annuities. Wife is not drawing SS yet, waiting to 70 when it means over $1000 more per month more. Hopefully we have enough to survive with what we have.

All we draw is my SS Teacher retirement and some out of our Mutual funds. So far so good, UNLESS Pedo Joe keeps destroying this country and our retirement.


Let's Go Brandon

Pretty much the same with us.

I retired at 64 and 9 months. I started drawing Social Security at that time. My wife started drawing at 62. Our SS totals $3016.00 a month. $36,200 a year. Our farm, house/shop, vehicles, tractor and side by side are paid for. We live off SS, savings, and my Vortex side business. We have not touched our IRA and plan not to do so for several years. Our IRA has decreased by about $80,000 since January first, but hopefully it will recover.

Our place is worth around $600,000. I had a local Mossy Oaks properties guy offer me almost twice that amount. I told him first off it's not for sale and second it would not appraise for the amount he offered. He said "It doesn't matter. It's an Iowa hunting property. I have nonresident clients that will pay cash for it". I told my wife to keep his number handy in case I die and she wants to sell.[emoji106]

My advice is to retire as soon as you can. You may have to make some lifestyle adjustments but it's not that difficult. Life is short. Enjoy it while you have the opportunity.


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[Dmck]

Last year in April my back doctor told me nothing more could be done for my back and asked me about our LTD insurance at work. Well I told him about it and he said I would have no problem getting on it. I talked it over with my management and they agreed and were all in willing to help. I had planned on retiring January 2022 with SS, pension, and 401. The LTD pay 65 % of my base pay tax free until I'm 67 so I should be set until then.
I worked for Chevron/Phillips and they were the best at making sure I was taken care of. Very caring and concerned about my well being.

[Dejashoot]

The $0 debt is smart
On health insurance saved what do you mean exactly? Just cash savings to cover healthcare expenses? Is this based on not having health insurance or a private policy?

Funding a private policy until Medicare kicks in.

[rossn2]

I started this journey four years ago with purchase of raw land.
Just laid off so retired early May 5th, almost 64 and wife 59. Was very worried about it, but things will be okay.
I have military retirement and wife works for another 30 days until we move. Our house under contract in TX and moving to TN. The custom-built manufactured home being placed on our property will be paid for in cash with a large junk from house sale left over goes into Savings account. So, no mortgage, land paid for, vehicles, motorcycle, side-by-side all paid for. the land is in a 10 year AG exception for Forestry, minimal taxes.
Next April wife turns 60 and starts her miliary retirement from Reserve, and I'll be turning 65 and starting SS little bit early and also I start a pension from Northrop Grumman. Wil have four incomes without touching monies in IRA/401k plans..with zero debt.