Bob Brinker Free Discussion Site 59,820+
- allancoleman
- SteveT
- pbradford6
- bbaddict
- allancoleman
- bbaddict
- allancoleman
- permabear
- BrianMcG
- allancoleman
This archived discussion is "read only".
For the corresponding "live" discussions, post in the active topic forum here.
« Previous 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 Next »
» allancoleman - Re: Critical Mass
In response to Critical Mass posted by bbaddict:hi bbaddict ,
congradulations on asking the right questions before getting to critical mass . most just wander their way into it .
i agree with Normxxx about " relief and well - being " . retirement is so good , i can hardly believe it . Normxxx is also right about budgeting for health care coverage . nothing like a major medical problem to erase your critical mass .
i agree with Jeremy77 that a 4% withdrawal should provide you with enough money to last your life time UNLESS Normxxx's TEOTWAWKI ( the end of the world as we know it ) happens . 
.
yours , and my , strategy of zero debts definitely makes retirement budgeting easier . personally one of my first adjustments was to move my personal spending budget of $50k a year to over $75k a year to cover my additional income taxes for plus or minus $100k a year ROTH conversions i've been doing lately and to allow for additional spending to cover my continued growth in my total assets .
i am also much more sensitive to risk now that i have critical mass . and when , at points in time in my life in the past , i didn't hesitate to make my stock asset allocation 100% during the secular bull market of the 90's and made quite a bit of money , i don't do that anymore . recently i was as much as 80% stocks and am now very comfortably at 9% .
good luck . there'll be surprises but you can get through them with enough money .
-- posted by allancoleman
» SteveT - Re: Re: Re:
In response to Re: Re: posted by bbaddict:
I think it would be unwise to assume that just because oil has not to this point triggered any significant increase in inflation, that it won’t at some point in the future.
Does anyone know of a web site that lists what percentage of GDP energy costs are?
-- posted by SteveT
» pbradford6 - Re: Critical Mass
In response to Critical Mass posted by bbaddict:Hi BBaddict
I took an early retirement at 59 because I no longer was capable of performing all my duties. Fortunately, I had a major disability policy that paid me $4000/month. I had already reached critical mass through frugal living and had my house paid and no debt. I was very, very fortunate avoiding the stock market collapse after retiring. I give credit to BB and credit for becoming fully invested again on March 11th 2003. Knowing then what I know now, I wouldn’t have had the confidence to have jumped back into the market when I did. But I am extremely grateful that I did.
My wife and I took several cruises initially, but I soon found I had too much time on my hands. I started doing part time work which didn’t impact on my disability payments and continue to do so because I enjoy working with children and seniors. My biggest surprise is discovering I am spending more on my monthly expenses. I have the money and I think Brinker has convinced me to start spending so I have poured money into my existing home in southern Ca to improve it. I have the advantage of proposition 13 and have lived in this house since 1970! My real estate taxes are a joke.
My biggest concern is staying healthy and enjoying life. I have decided that if I ever wake up without some sort of minor pain, soreness, or ache I’ll be dead! I make it a habit of never complaining and try to watch my weight and exercise but I do observe the effects of ageing and they are a bummer. All in all I think I have a great life. Good luck with your future retirement. BTW I think for a person to have a comfortable retirement, he needs $1,500,000.
-- posted by pbradford6
» bbaddict - Re: Re: Critical Mass
In response to Re: Critical Mass posted by pbradford6:Great, informative posts... keep 'em coming!
$1,500,000, 4% withdrawal = $60k per year?
House, cars paid off. Simple life, but travel well. Is that CM?
-- posted by bbaddict
» allancoleman - Re: Critical Mass
In response to Re: Re: Critical Mass posted by bbaddict:although you've got the numbers right according to the generic thinking of today , critical mass is different for everybody . i agree with bob brinker's definition of critical mass and that it's different for everybody . critical mass for the " donald " trump is different than critical mass for me or for yourself .
in years past before the beginning of the secular bear market losses that began in 2000 , people were advised that it was o.k. to take out 6% and some were even advised that 8% was o.k. however , IF $60K is enough for you to maintain a comfortable life style then a million and a half is probably enough critical mass for you according to today's current thinking . course , this is assuming that you don't do anything major stupid to lose your critical mass due to investment mistakes .
i think the most important asset you have toward your critical is your zero debt status . protect it , cause once you get into debt , it's a endless cycle of needing more and more returns to keep up with the payments .
another of bob's words of wisdom is FOCUS on your health once you've obtained critical mass , cause without your health , critical mass isn't worth much .
i have several friends who are retired on 1.5m , less than a million , and about $300k to $500k and we all fight for the check when we go out to lunch or dinner . so critical mass is relative .
for me , it's a condo in alaska and one in hawaii , a vehicle on both ends , surfing everyday in kona in the winter and rving in alaska in the summer is critical mass . and whatever amount of money it takes to maintain that lifestyle is enough for me . my present annual withdrawal rate is 2.5% so even if Normxxx's EOTWAWKT happens , i should be fine . i could increase my spending but i'm very happy doing what i'm doing so now so enjoy just watching the market for now . for me , my best security is my ability to do without .
-- posted by allancoleman
» bbaddict - Re: Re: Critical Mass
In response to Re: Critical Mass posted by allancoleman:Thanks, Allan. I assume the friends who are retired on $300-500k have some pension, SS, or other income?
-- posted by bbaddict
» allancoleman - Re: Critical Mass
In response to Re: Re: Critical Mass posted by bbaddict:actually no . he's the youngest of the bunch at 57 and has quite a bit of equity in his home and a part time job ( janitor , bathroom cleaner , handyman ) at a church . sometimes riches aren't of this world . he is presently on a annualized spend down program from his 401(k) that will end in about ten years and he may run out of money about that time . or figures he may have about $100k left about that time .
as i , and bob brinker , have said , critical mass is relative and he's happy . and it's all i can do to grab the check before any of the rest of them do . inspite of the fact that i always state before we eat that the guy with the most critical mass ( me ) should always pick up the check . ! ! .
-- posted by allancoleman
» permabear - Re: Re: Critical Mass
In response to Re: Critical Mass posted by Normxxx:"Also, if you want to be considerate of your heirs, get some LT Care insurance."
From my own personal experience managing my grandmother's affairs (she passed away last year at age 94), I personally would not choose to purchase long term care insurance. Before I got involved, she had purchased a long term care policy. Over the years, as she aged the payments kept on growing exponentially. At age 85 I believe they went to something like $1,500 per month. At that point I stopped the policy. I saw it as a big-time ripoff. My grandmother stayed in a board and care home for over 12 years and would have never been able to utilize the policy, so I made the right decision. As I approach retirement age, I will not purchase a long term care policy for myself. It pays if someone goes into a nursing home and stays there for several years. But for most folks, I think just saving your money for the rainy day makes more sense. If you need nursing care, if you are at critical mass, you can most likely afford the nursing home payments ($50,000 to $80,000/year) with your existing savings.
-- posted by permabear
» BrianMcG - Re: Re: Re: Critical Mass
In response to Re: Re: Critical Mass posted by permabear:From my own personal experience managing my grandmother's affairs (she passed away last year at age 94), I personally would not choose to purchase long term care insurance.
A few years ago, I was very aggressively solicited for LT care insurance by multiple salesmen. I did some reading on the subject and gave it serious thought, while stalling the aggressive salesmen. I never could come to a definitive conclusion, but the aggressiveness with which the salesman tried to sell me raised serious doubts in my mind. One persistently asked to come to my home. I consented and was given a slick pitch; when I demurred, the salesman showed his anger. It was pretty obviously a good deal for the salesman. I hope, of course, that I made the right decision. Now several years later, I am still in good health; I have several thousand dollars more in my investment account. Part of my thinking was my own family experience. None of my parents or grandparents ever needed LT care and thus would not have benefited from such a policy.
-- posted by BrianMcG
» allancoleman - Re: Critical Mass
In response to Re: Re: Critical Mass posted by permabear:my own study of the long term care situation agrees with Normxxx AND permabear & BrianMcG .
the truely wealthy can afford to " self pay " for long term care . the poor will get it through Medicare and Medicaid , although they probably won't like the quality . it's the people in the middle who should consider it , not only for their heirs , but also for themselves .
the stories i've heard aren't good about the insurance companies being there to back up the policies . like most investment decisions , it's a personal call .
-- posted by allancoleman
« Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 Next »
Please follow the guidelines set forth in the Suite101 Posting Etiquette when adding to the discussion.