04-09-2019, 05:46 PM
Not really an answer to your question, but I have sure game planned mine a lot. I am fortunate to have some government pensions, but they kick in at different ages. I have a rental property that yields income. I could sell it and stay completely out of my stock port if the market was down. I decided I don't care if my stock port is mostly gone when I am 85 years old. I have no problem eating some of the golden good before a retirement home takes it. I will probably turn a few assets over to my daughter when I get well along in my retirement years. Hopefully in time to protect it from said retirement home. I am frugal and don't want to consume my principal, but I made financial sacrifices to build my port. You can't take it with you as they say. I don't feel the need to die a millionaire. Point being a straight 4% rule retirement spreadsheet is fairly worthless to me. My plan looks a little like this. I am going to make up some numbers for the purposes of the discussion. This all starts in three years at age 60. I am pretty much debt free now, and intend to stay that way. Maybe a car payment by then?
60-61- $50K from all sources so I can just get fully retired. If the market happens to do great the next few years then I get a raise. Make sure I have a separate fund set aside for that brand new walleye boat and a truck. The one I have now will get along until then. That's important to me.
62-70- this is retirement prime-time. All pensions have kicked in by age 6. $100K income. Maybe the market gets hit and there are some $75K years in there? Or maybe it's $110K? I a not going to worry about it because I will be OK either way.
70-75- I am starting to get old. It's a long time from now and who knows what my health will be like. Who knows what the market does in 13 years? These are potentially the go hog wild years with the money. Time to move some assets into the kids name. I'll know how financially mature she is by then.
75 til death. At the very least my pensions keep me with a reasonable income. I intent to still have a lot of my stock port though. I suspect I can get along with a little less income if that is how it turns out.
So my advice is play around with your life plan. You can tweak it as you go. A 4% plan where my income is exactly the same at age 65 as it is at age 90 makes about zero sense to me. It's OK if you disagree of course. And BTW, one of my best friend's Dad is 80 now and he has a similar situation. He says "the only thing golden about these years is my pee, and I am enjoying life with the money I saved". He did just that from age 65-80 with no regrets.
I expect most of us got here because we were spmart with our money over the years. Is it smart to act (financially) like you are 25 if you are 75? I say no it isn't.
60-61- $50K from all sources so I can just get fully retired. If the market happens to do great the next few years then I get a raise. Make sure I have a separate fund set aside for that brand new walleye boat and a truck. The one I have now will get along until then. That's important to me.
62-70- this is retirement prime-time. All pensions have kicked in by age 6. $100K income. Maybe the market gets hit and there are some $75K years in there? Or maybe it's $110K? I a not going to worry about it because I will be OK either way.
70-75- I am starting to get old. It's a long time from now and who knows what my health will be like. Who knows what the market does in 13 years? These are potentially the go hog wild years with the money. Time to move some assets into the kids name. I'll know how financially mature she is by then.
75 til death. At the very least my pensions keep me with a reasonable income. I intent to still have a lot of my stock port though. I suspect I can get along with a little less income if that is how it turns out.
So my advice is play around with your life plan. You can tweak it as you go. A 4% plan where my income is exactly the same at age 65 as it is at age 90 makes about zero sense to me. It's OK if you disagree of course. And BTW, one of my best friend's Dad is 80 now and he has a similar situation. He says "the only thing golden about these years is my pee, and I am enjoying life with the money I saved". He did just that from age 65-80 with no regrets.
I expect most of us got here because we were spmart with our money over the years. Is it smart to act (financially) like you are 25 if you are 75? I say no it isn't.