Retirement plan status
02-17-2017, 12:28 PM
#31
Here's my question.... When I talk with my advisor, we discuss about 80% or so of working wages during retirement. I don't know that I agree or disagree, but it's the model we're using. Against that model with a modest return on our 401Ks each year from now until 60, we are ahead of schedule. If we model at 60%, I could probably retire earlier if I wanted..
02-17-2017, 12:50 PM
#32
Registered User
This July will be two years since I retired. I decided to quit when work became a pain (enforcing Obamacare did it). I didn't have a budget, (maybe unusual for a CPA) but had healthy IRAs for both of us, and knew when we sold our house we would have a tidy nest egg. It's all working out. I guess if I run out of money I can go rob a bank, ready cash if I'm successful and government paid housing and healthcare if I'm not.
Seriously, the first year I found myself getting bored at times. Then we found a replacement home that needed remodeling, and that was a full time job until just a month ago. We moved in January, and when we finally get settled, and the weather improves, I think I will keep busy with biking, jetskiing, yard work and travel.
Seriously, the first year I found myself getting bored at times. Then we found a replacement home that needed remodeling, and that was a full time job until just a month ago. We moved in January, and when we finally get settled, and the weather improves, I think I will keep busy with biking, jetskiing, yard work and travel.
02-17-2017, 02:17 PM
#33
Thread Starter
Our advisers approached a little differently. We actually analyzed our spending for three years prior to retirement. The question was, will you continue to spend at the same rate after retirement (actually Nancy's retirement, as I have been out for quite some time). We looked at what we were spending, and looked at our assets, and used actuarial tables to decide how much money we needed and when it would run out. We believe that we have enough to live to a very old age, and not really counting on SS.
02-17-2017, 02:21 PM
#34
Thread Starter
I am looking forward to the answer to Gary's question. I'm not sure how much less of our income we can expect to live on in retirement. It's a tough figure to estimate. We are not world travelers now, nor do we expect to be in retirement. We don't have a mortgage, but cars don't last forever. Even if we enter retirement with automobiles that are paid off, down the line a new vehicle or two will be needed. We will have a larger amount due monthly for health insurance premiums than we are currently dishing out. We are not living in a house that needs to be downsized;, taxes, utilities, insurance costs will only continue to rise. We won't have to save for retirement, but is no longer needing to set aside "X" enough of a difference in how much money we will need in retirement?
Obviously those with pensions may be able to supplement their income with the SS and minimal withdrawals from retirement account. Unfortunately, neither or us has a pension so withdrawals from retirement accounts could exceed the recommended 3-5% annually or whatever it is.......
Obviously those with pensions may be able to supplement their income with the SS and minimal withdrawals from retirement account. Unfortunately, neither or us has a pension so withdrawals from retirement accounts could exceed the recommended 3-5% annually or whatever it is.......
02-17-2017, 02:23 PM
#35
I've always had a spreadsheet/budget. That is what I'm using to figure our needs. Have to guess on health care, but the budget has a column for the mortgage that will more than cover the health care when the house is paid off.
02-17-2017, 02:52 PM
#36
I'm not sure I'll like the answer...
I'll have to start tracking annual expenses, make a spread sheet, get organized. Sounds like a retirement project.
I'll have to start tracking annual expenses, make a spread sheet, get organized. Sounds like a retirement project.
02-17-2017, 04:59 PM
#38
Every year tax season becomes a little more difficult, a little more frustrating and a little less satisfying. I'm still not ready to retire, but I'm closer than I've ever been.
02-18-2017, 07:42 AM
#39
Our advisers approached a little differently. We actually analyzed our spending for three years prior to retirement. The question was, will you continue to spend at the same rate after retirement (actually Nancy's retirement, as I have been out for quite some time). We looked at what we were spending, and looked at our assets, and used actuarial tables to decide how much money we needed and when it would run out. We believe that we have enough to live to a very old age, and not really counting on SS.
For retirement, I may have misspoke. I'm guessing it's probably closer to the expense ratio when working vs. retirement as compared to income in/out during retirement. OR, maybe it's all really the same, just how you spin the question. If I have X in retirement principle and I have Y available to me each year, and I spend Z in expenses. Do I have enough to cover that for N(umber) of years. Flipped, it's -- I expect to spend Z each year during retirement, based on X principle and Y available each year, can I sustain for N years.
I guess it's better thinking and preparing than not. Maybe that's the bottom line.
02-19-2017, 02:09 AM
#40
We noticed that we were spending our "net pay wages" over the course of the year, mortgage, visa, car payment or purchase, year end taxes, etc. Our dollars in the typical savings account remained basically the same amount over the course of the year.
That is what we used as what we would spend during retirement.
At the same time, we were maxing out our 401k plans, employee stock purchase plan (Kathy), so what we were bringing home "net" was the only $$ we saw.
So far, we are actually spending a bit less.