How many retirees on here follow the 4% rule?

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Jackielou
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Re: How many retirees on here follow the 4% rule?

Post by Jackielou » Fri May 11, 2018 8:54 am

icfrugal1 wrote:
Thu May 10, 2018 8:50 pm

We can not live on our SS and the income from the rental, and no, for the most part we do not live extravagantly. (outside of the rolling pins 8-) )

But we have no kids so......

IC
We can't live on what Huuby gets from our government. He has no other pension other than what we managed to save in RRSP's. The amount I will receive is even worse. But this is the reason we did save, to suppliment our government pensions.

LOL on the rolling pins.

rinty
Posts: 979
Joined: Fri Aug 28, 2015 3:54 am

Re: How many retirees on here follow the 4% rule?

Post by rinty » Fri May 11, 2018 11:22 am

gaylejackson2 wrote:
Thu May 10, 2018 4:04 pm
I just read this article, and I'm curious about what you all think.... and do. ;)

https://www.marketwatch.com/story/dont- ... 2018-05-04
Well, DH is retired and we don't draw down on any of our investments, don't need to.

We have no mortgage and we are boring :D

We drive 2 cars and have a nice house in a pleasant area. Downsizing from our previous home meant the 4 kids have a "Pot 'o Cash" to use to get themselves on the housing ladder ( only the 2 dds have done this so far, the two DS rent and of course Tom is handicapped ) The cash is only available for use that way. For example DS wasn't able to use any to pay for his wedding for example through we did contribute to that cos , hey, we are parents and we love our kids . The boys seem to like the idea that they know its there and can't be touched.

Talking to DH one weekend when I was envious of a NICE motorhome ......he pointed out it was our choice to do what we've done, he is right of course.

" Sucks to be you, Kids !!!! but we have a GREAT 75k Motorhome !!!! ". So that's only a fantasy now :?

DH has 2 great private pensions and get the statutory old age pension..well, he has worked for 50 years !!!! I will get the statutory OAP and I have a private one that will yield me a MAAAHOOSIVE £3K a year extra. Meh.

All the kids have set up private pensions before they were 25.

When DH gets older we'll downsize again to a flat.

icfrugal1
Posts: 2107
Joined: Fri Aug 28, 2015 12:54 am

Re: How many retirees on here follow the 4% rule?

Post by icfrugal1 » Fri May 11, 2018 3:14 pm

rinty wrote:
Fri May 11, 2018 11:22 am
gaylejackson2 wrote:
Thu May 10, 2018 4:04 pm
I just read this article, and I'm curious about what you all think.... and do. ;)

https://www.marketwatch.com/story/dont- ... 2018-05-04
Well, DH is retired and we don't draw down on any of our investments, don't need to.

We have no mortgage and we are boring :D

We drive 2 cars and have a nice house in a pleasant area. Downsizing from our previous home meant the 4 kids have a "Pot 'o Cash" to use to get themselves on the housing ladder ( only the 2 dds have done this so far, the two DS rent and of course Tom is handicapped ) The cash is only available for use that way. For example DS wasn't able to use any to pay for his wedding for example through we did contribute to that cos , hey, we are parents and we love our kids . The boys seem to like the idea that they know its there and can't be touched.

Talking to DH one weekend when I was envious of a NICE motorhome ......he pointed out it was our choice to do what we've done, he is right of course.

" Sucks to be you, Kids !!!! but we have a GREAT 75k Motorhome !!!! ". So that's only a fantasy now :?

DH has 2 great private pensions and get the statutory old age pension..well, he has worked for 50 years !!!! I will get the statutory OAP and I have a private one that will yield me a MAAAHOOSIVE £3K a year extra. Meh.

All the kids have set up private pensions before they were 25.

When DH gets older we'll downsize again to a flat.
My mother always helped the 3 of us "kids" she felt that she would rather help us when she was alive and could see it then wait until she died. :lol:

Also, she was hoping to leave less to the government, even with that the government got about 1/4th of her estate. :o

My girl friend lost her mother late last year and this year she and her DH gave $$$ to each of their 3 kids. One of the kids is using he money for a down payment for a house!!!! Her sister and her sister's DH did the same for their kids. I know that her parents are looking down from heaven with BIG smiles on their faces. :D

How wonderful you and your DH are, I love that the "kids" understand the purpose of the money. You raised them well!

IC

LogicsHere
Posts: 283
Joined: Sat Aug 29, 2015 9:49 am

Re: How many retirees on here follow the 4% rule?

Post by LogicsHere » Fri May 11, 2018 5:45 pm

I am living on about 75% of my SS currently but am required to take RMD's on both my 401K and IRA. The RMD for both has been 4% for the last 2 years, but I chose to take 8% from my 401K. I've hit about $6K of my savings in redoing my bathroom. And I have additional investments that I will start taking when I hit 80. Those I have to start taking before I hit age 85. Based on my analysis and barring any catastrophic situations and the government messing with SS, I should have almost 50% more than I do now by the time I'm 99.

BevMoore
Posts: 477
Joined: Thu Aug 27, 2015 11:04 pm

Re: How many retirees on here follow the 4% rule?

Post by BevMoore » Fri May 11, 2018 10:37 pm

i have my CalPers pension from working for the State of California for over 33 years. That pays all the bills and living expenses. My Social Security theoretically is for my savings although I have been helping DD some. My pay from working for the school district pays the vet bills for my pets and is also my fun money. Once I pay off the vehicle and the house the money will flip flop and the SS will pay the bills and living expenses. Hopefully now that my nephew, who knows how to invest can help me set up some investments accounts to grow my funds. Inflation is definitely eroding my income. Both provide a COLA of about 1.5 to 2% annually but that is not enough to keep up with the rate of inflation. I do have small 401K and 457 accounts and will be required to start taking the RMD in three years. Those funds will be reinvested.

Ten years ago I was advised to take out a long term care insurance policy so I do pay on that. The hope is that if I need assisted living at some point I will have the "three legged stool" to fall back on. I am not interested in traveling except to visit family. If I was married or had a companion traveling might appeal more to me. There are plenty of interesting things to see and do locally. I am not interested in "dating" I have no desire to color my hair and set up a profile on dating sites. To me "dating" is more work than I want to do. I have quite a few female friends to do things with and I am satisfied with that.

My main focus is wellness. I work to maintain good health so I can enjoy my retirement.

Bev

Dgflorida
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Joined: Wed Oct 07, 2015 8:10 pm

Re: How many retirees on here follow the 4% rule?

Post by Dgflorida » Sat May 12, 2018 10:19 am

This was an interesting article. Thanks for posting it. When we were younger, pre-retired, the financial people trying to sell us financial stuff always ran the numbers. They didn't like that we lived frugally. The method they used requested us to provide them with a monthly budget of expenses. They begrudgingly discovered that we would not use up the saved money in a normal lifespan using the 4% rule. It is not that we had a lot of saving. It was that our monthly expenses were so low. They liked to insist that we would live into our mid 90's. Really? To need more money, we would have to live to about 150 years old. :lol:

Now we have a substantial amount from inheritance as well as savings. So I am doing my best to spend it. New driveway, new windows, new roof etc. But the problem is that I just don't like to waste money. I still like to make thoughtful choices. Hubs runs the numbers regularly and says he doesn't understand how we did it. After all, there are all these stories of financial ruin. The bottom line is managing expenses. Most are manageable. I still don't have a new refrigerator or stove. Both are still working. I don't have a new car because the old one decided to behave.

This year, hubs starts the required minimum withdraws. It should be interesting.

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