Critical Mass - Care and Feeding For Once Attained

Top 42. Dec 23, 2003 4:40 PM

» bob90245 - Re: How much is enough? (continued)

In response to message posted by bob90245:

I left out one important assumption. I am assuming a balanced portfolio 50/50 stocks/bonds (which has been mentioned as giving a high probability of achieving a 4% withdrawal rate). Note that a stock allocation below 50% might require a lower withdrawal rate - which means you would need to multiply your (expenses - fixed income) by a number greater than 25.

Bob

-- posted by bob90245

Top 43. Dec 23, 2003 5:27 PM

» allancoleman - Re: Re: How much is enough?

In response to message posted by bob90245:

bob90245 ,

your assuming that social security won't be there is smart . i'm finding out that because i retired early ( age 55 ) that my social security payment predictions has dropped because i'm no longer contributing to the system .

-- posted by allancoleman

Top 44. Dec 23, 2003 5:45 PM

» allancoleman - Re: Re: Re: Re: Re: Re: Re: How much is enough?

In response to message posted by Kirk:

kirk ,

i'm sure you'll agree , but i find the surfing community very friendly and more than willing to help a grommet .

my primarly computer ( actually only ) is a lap top . and it's getting long in the tooth . but because i use dial - up because of my travels , it's o.k. i'm waiting for X P 64 bit software and hardware availability in another lap top before i make my next buy . and my buy too will probably be a Dell because they are the premium box maker . although i've been very happy with my Compaq .

agree with you about ROTH's . i'm presently in the process of converting a chunk of my deferred accounts into a ROTH every year so as to prevent myself from being in the highest tax bracket forever later when i have to take minimium distributions at age 70 1/2 . should be done converting all my accounts in 10 more years . hope to move into the lowest bracket later .

as you said , nothing we do is permanent . and staying in touch with ALL of the forums here will help me to stay out of trouble .

-- posted by allancoleman

Top 45. Dec 24, 2003 8:24 AM

» pbradford6 - Re: Re: Re: Re: Re: Re: How much is enough?

In response to message posted by allancoleman

i don't ever plan on working again . not for anyone else anyway .

I was self employed for about 34 years. Being your own boss is tough; it is no cake walk! Now I am doing consulting for the county and an insurance company with no fixed schedule and am enjoying it. I no longer have to worry about OSHA, payroll, insurance, over head, etc.

Plus with critical mass obtained, I don't feel any pressure about "putting bread on the table"! smile It's altogether a different work experience for me.

Merry Christmas to all!

-- posted by pbradford6

Top 46. Dec 24, 2003 8:37 AM

» allancoleman - Re: Re: Re: Re: Re: Re: Re: How much is enough?

In response to message posted by pbradford6:

pbradfort6 ,

didn't realize you could be such a stinker to work for . smile . and you're right about critical mass being a different world . i saved my whole career and didn't think i would be able to retire early . the secular bull market of the 90's plus getting out of the market early in mid 1999 , made it possible .

i can't believe how pleasurable retirement is . my fellow workers and retired friends have the same experience too . glad to be out of the workforce .

hope your christmas is merry too . and what ever you do , drive safe . now , in retirement , isn't the time to have a serious accident and ruin your retirement . i focus on my health now in retirement to keep this good thing going as long as i can . my goal now is to retire longer than i worked .

-- posted by allancoleman

Top 47. Dec 24, 2003 9:46 AM

» pbradford6 - Traditional IRAs

When calculating critical mass and a substantial portion is in a rollover traditional IRA, is it customary to count the amount on an after tax basis? For example if you have 2 mil in a rollover, do you count it as just 1 mil after taxes for retirement planning?

In addition when calculating cm, do you count your personal home’s value?

When you arrive at 70 what percent is the mandatory distribution of a traditional IRA?

Thanks in advance………

-- posted by pbradford6

Top 48. Dec 24, 2003 5:40 PM

» allancoleman - Re: Traditional IRAs

In response to message posted by pbradford6:

pbradfort6 ,

i would count the total ( the $ 2 mil figure in your example ) as my assets . god knows what your tax bracket will be when you take money out of those deferred accounts . one of the really nice things about retirement is you can really control your income and therefor your tax bracket .

i count all my real estate as a part of my total asset base . that's after subtracting liabilities ( mortgages , loans , etc ) of course . you can always turn your real estate into money in retirement and further your retirement years if you have to .

the i.r.s. publication 590 has all that information as to the minimium distributions required at age 70 1/2 . publication 590 is really the BIBLE for retirees . it's actually a straight divisor and not a percent . it's been simplied and is easier now .

as a personal note , if you really have a amount that large in your deferred account and you are young , you need to consider converting some of those deferred accounts into a ROTH . there's alot of roth calculators on the web . in all instances i've seen , it only makes sense to convert to a roth if you use other personal money outside your deferred account to pay the taxes necessary to convert . otherwise minimium distributions at age 70 1/2 will keep you in the highest tax bracket forever if you have any growth at all in those accounts .

-- posted by allancoleman

Top 49. Dec 24, 2003 5:51 PM

» lcha - Re: Re: Traditional IRAs

In response to message posted by allancoleman:

I bet there are many people who would love to suffer the pain and agony of being in the highest tax bracket forever. smile

I would also bet that for most people, reaching critical mass is when they have totally maxed out there debt limit, which has grown so massive as to be critical.

-- posted by lcha

Top 50. Dec 24, 2003 6:10 PM

» dija - Re: Re: Re: Re: Re: Re: Re: Re: How much is enough?

In response to message posted by allancoleman:

allancoleman said: "i can't believe how pleasurable retirement is . my fellow workers and retired friends have the same experience too . glad to be out of the workforce ."

allan, a LOT of people become bored in retirement. When I was nearing retirement, many people told me I was going to be disappointed. One 72-year-old said he retired at 62 and was back at work at 65. He said, "I give you a maximum of 3 years,and you will be back. You will be bored to tears."

I knew they were all wrong. I knew I would love being retired and would never be bored for a minute. The real truth is, retirement is even FAR FAR better than I ever dreamed it would be. Every day is an absolute delight! The idea of doing what you want to do, instead of what you HAVE to do, is true happiness.
Boredom is not in my vocabulary (it never has been).

Like you, I am now focused on health. Every year, every day, is so important now. I have never been happier.

And don't worry! There is NOTHING in the Hong Kong chow mein that is not good for you!!! - smile

-- posted by dija