OT - Money / Investing Thread (aka financial no stupid questions)

[MikeDeTiger]

But as I said... That's 5 years out. Right now I'm focusing on the accumulation phase... If by then I know what my number is and I've overshot, well, that's a good problem to have. I suspect I might still have a few years to go at that point though...

We're quite a bit further out, but keeping an eye on "the number" is a good idea.  I'm forecasting pretty far ahead at the moment, and as I mentioned, I've factored in bottom-end returns, and (assuming I stay at this job) a worst-case scenario pension.  I figure there's quite a decent chance we beat the amount I'm projecting, but I like to plan conservatively.  I'm also relying on ssa.gov's projections for our projected SS income at various ages, which....I have no idea how accurate that is.  

Point being, I have this all entered into a spreadsheet now where I can quickly update the inputs.  I need to remember to revisit every so often, and it'll be a good idea to adjust the assumptions and consequent projections as time goes by and some of today's projections become yesterday's quantifiable reality.  No sense in working past when we need to, I reckon.  If returns outpace my conservative estimates and some other things transpire, we might be able to knock a few years off.  We'll see.  

[MikeDeTiger]

I hope everyone here is truly prepared for a major health event.

Two down, ? to go.  

[Riffraft]

I don't follow any withdrawal rule.  I withdraw what I need when I need it, though I plan for expenses so I am not forced to liquidate an asset I don't want to liquidate. 

Before I retired, I looked at my annual expenditures, being an anal CPA, I had detailed tracking of my expenses. Put in an allocation for travel.  Look at projected SSI for my wife and I. Ran all this out for 30 years adjusting for projected inflation.  I looked at the shortage SSI from Expenses.  From there I looked at my assets and figure out what growth I need on those assets for my money to last.  Figured I needed a 4% return, so I retired.  Been retired for 2 and half years and up to this time I actually have more money than when I retired because my ROI has been much greater than 4%.  

As to the mix, I originally had a more balanced mix with bonds, but as I have liquidate those assets, I have tended to be heavier in stocks.  A financial planner might say I have let it go too far that way and I have consider reallocating but haven't taken the step.  

[Riffraft]

We're quite a bit further out, but keeping an eye on "the number" is a good idea.  I'm forecasting pretty far ahead at the moment, and as I mentioned, I've factored in bottom-end returns, and (assuming I stay at this job) a worst-case scenario pension.  I figure there's quite a decent chance we beat the amount I'm projecting, but I like to plan conservatively.  I'm also relying on ssa.gov's projections for our projected SS income at various ages, which....I have no idea how accurate that is. 

Point being, I have this all entered into a spreadsheet now where I can quickly update the inputs.  I need to remember to revisit every so often, and it'll be a good idea to adjust the assumptions and consequent projections as time goes by and some of today's projections become yesterday's quantifiable reality.  No sense in working past when we need to, I reckon.  If returns outpace my conservative estimates and some other things transpire, we might be able to knock a few years off.  We'll see. 

my spreadsheet is updated daily after the market closes, as I said I am a bit OCD 

[MikeDeTiger]

my spreadsheet is updated daily after the market closes, as I said I am a bit OCD

That's good hustle.

[FearlessF]

too good

[FearlessF]

I have heard multiple investment advisors/retirement planners/wealth management folks say that having a hard time getting people to start digging into their savings is a real-world challenge, and a fairly common one.  People are apparently so scared about their futures that they hesitate to touch their assets, or unnecessarily withdraw only bare minimums when they do access them.  People living below their means, in other words.

Some have talked about having to encourage their clients to enjoy the fruit of their hard work and reassure them that it's okay, it's what was planned for.  I've even heard some talk about doing little exercises to get their clients used to the idea and stop being scared.  Maybe that's what your guy wanted to check.....a litmus test to see if you'll dig in or if you're one of the ones he's gonna have to beat over the head and force to have a good time. 

he knows who I am - he's my cousin's son

He's been tellin me for years I'm just like his grandpa. a cheap SOB that won't spend money.
He says, and I quote, "Fearless, you're just like my grandpa, the only question is,........ how much money you're going to leave for your children"

He beat me over the head for almost 10 years to get me to buy a red Chevy

[Cincydawg]

This is for married filing jointly.  

[utee94]

he knows who I am - he's my cousin's son

He's been tellin me for years I'm just like his grandpa. a cheap SOB that won't spend money.
He says, and I quote, "Fearless, you're just like my grandpa, the only question is,........ how much money you're going to leave for your children"

He beat me over the head for almost 10 years to get me to buy a red Chevy

I've told my folks that I don't need them to leave anything for me, they should enjoy their money in their retirement-- as long as they don't end up leaving me a bill.

If that were to happen, they're going into the worst, cheapest home I can find.

[847badgerfan]

We will be staying at/around the top of the 22 percent bracket when I retire.

The 32 percent days are long-gone for us.

[MikeDeTiger]

This is for married filing jointly. 

"Taxable Income" is a trickier number to calculate for retirees than for working folks, near as I can tell from reading the gub'ment website.  They have a tool that calculates it for you, though, as long as you know what the terms mean.  

[betarhoalphadelta]

I've told my folks that I don't need them to leave anything for me, they should enjoy their money in their retirement-- as long as they don't end up leaving me a bill.

If that were to happen, they're going into the worst, cheapest home I can find.

One thing I don't ever have to worry about is fighting with my siblings over an inheritance. Nothing to fight over.

[Cincydawg]

"Taxable Income" is a trickier number to calculate for retirees than for working folks, near as I can tell from reading the gub'ment website.  They have a tool that calculates it for you, though, as long as you know what the terms mean. 

It's a bit obscure because SS gets taxed in many cases, at some difference percentage.  My wife and I get a decent chunk from SS each month, thanks.  And we get taxed on parts of it.  I just use Turbotax.  When I withdraw from my IRA I withhold a guestimated amount, I usually get money back from the state and owe the Feds.

[Cincydawg]

My parents left us "too much", though they were both 93 when they passed and not in good enough shape to have spent more of their own.  This is the conundrum of course, one can't be assured of not needing funds for health care/assisted living/etc.  down the road, and then you wait so long to begin enjoying your savings, you can't because of health issues.

My uncle was 104 when he passed, and my great grandmother was 102, so I have to think about that many more years possibly.