Comments on: THE NEST EGG STRETCH – 5 Potent Tactics You Can Use http://wealthpilgrim.com/nest-egg/ WealthPilgrim.com -No Money Worries. No Matter What. Tue, 15 May 2012 03:52:59 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Neal Frankle http://wealthpilgrim.com/nest-egg/#comment-19889 Neal Frankle Tue, 06 Dec 2011 04:12:38 +0000 http://wealthpilgrim.com/?p=19547#comment-19889 I also spent some time at the school of hard knocks. It was tough but I got a heck of an education. I also spent some time at the school of hard knocks. It was tough but I got a heck of an education.

]]> By: Ronald Dodge http://wealthpilgrim.com/nest-egg/#comment-19872 Ronald Dodge Tue, 06 Dec 2011 03:10:45 +0000 http://wealthpilgrim.com/?p=19547#comment-19872 You are right Neal, most people get scared off by such high numbers. For me, I learned to adapt to such rules cause they are rules of life. But then again, I essentially was forced to learn to conform not only to life and social rules, but also to lopsided administrative rules to the T in their harsh cold systems with no regards to anyone elses own good but their own. That in itself along with the hard times I had to deal with very early on in life was what had me to do the self studies I have done, which was how I came up with these various financial rules. You are right Neal, most people get scared off by such high numbers. For me, I learned to adapt to such rules cause they are rules of life. But then again, I essentially was forced to learn to conform not only to life and social rules, but also to lopsided administrative rules to the T in their harsh cold systems with no regards to anyone elses own good but their own. That in itself along with the hard times I had to deal with very early on in life was what had me to do the self studies I have done, which was how I came up with these various financial rules.

]]> By: Ronald Dodge http://wealthpilgrim.com/nest-egg/#comment-19860 Ronald Dodge Tue, 06 Dec 2011 02:18:28 +0000 http://wealthpilgrim.com/?p=19547#comment-19860 That advisor is right. When I mentioned a withdrawal rate of 2%, that means total investable assets needs to be a multiple of 50 of annual withdrawal (100% divide by 2%). As such, $100k * 50 = $5 million. For me when I last checked my numbers, it was a withdrawal rate of $90k, thus $90k * 50 = $4.5 million. I'm also sick and tired of this newsletter thing popping up on me about 30 seconds after I go onto a page and interfere with either my reading or typing. That advisor is right. When I mentioned a withdrawal rate of 2%, that means total investable assets needs to be a multiple of 50 of annual withdrawal (100% divide by 2%). As such, $100k * 50 = $5 million. For me when I last checked my numbers, it was a withdrawal rate of $90k, thus $90k * 50 = $4.5 million.

I’m also sick and tired of this newsletter thing popping up on me about 30 seconds after I go onto a page and interfere with either my reading or typing.

]]> By: Ronald Dodge http://wealthpilgrim.com/nest-egg/#comment-19859 Ronald Dodge Tue, 06 Dec 2011 02:13:46 +0000 http://wealthpilgrim.com/?p=19547#comment-19859 Based on my self studies, I came to the conclusions of the following: Withdraw only 2% of total investable assets annually (this means a very good majority of the funds must be in ROTH IRAs on account of RMD rules) In Neal's example, it's a 6% withdrawal, which is still too high by economists suggestion of 4% annually. I use the 2% cause I factor into account of market risk factor based on the self study of retirement I did back in 2001. In retirement years, 80% in equity with 20% in cash/bond type investment initially so as to allow the funds keep up with inflation net of taxes. Look to see if the funds need to be rebalanced (check annually), but if less than 80% of the funds are made up of equity, do NOT move funds from cash/bonds back to equity as this cash/bonds is your safety net for poor economic time period. Instead, just withdraw money from this cash/bonds fund, but don't let it get below 15% of total investable assets (Ideally not below 20%, but there can be market fluctuations). Don't withdraw from the funds until you reach the age of 70 unless you have no realistic choice or you are in poor health. What would happen if you end up living to the age of 110 years? Based on my self studies, I came to the conclusions of the following:

Withdraw only 2% of total investable assets annually (this means a very good majority of the funds must be in ROTH IRAs on account of RMD rules) In Neal’s example, it’s a 6% withdrawal, which is still too high by economists suggestion of 4% annually. I use the 2% cause I factor into account of market risk factor based on the self study of retirement I did back in 2001.

In retirement years, 80% in equity with 20% in cash/bond type investment initially so as to allow the funds keep up with inflation net of taxes.

Look to see if the funds need to be rebalanced (check annually), but if less than 80% of the funds are made up of equity, do NOT move funds from cash/bonds back to equity as this cash/bonds is your safety net for poor economic time period. Instead, just withdraw money from this cash/bonds fund, but don’t let it get below 15% of total investable assets (Ideally not below 20%, but there can be market fluctuations).

Don’t withdraw from the funds until you reach the age of 70 unless you have no realistic choice or you are in poor health. What would happen if you end up living to the age of 110 years?

]]> By: Neal Frankle http://wealthpilgrim.com/nest-egg/#comment-19357 Neal Frankle Sun, 04 Dec 2011 00:21:23 +0000 http://wealthpilgrim.com/?p=19547#comment-19357 That figure isn't unrealistic but it doesn't account for the fact that you may have a pension or social security income to offset. Also, does your plan consider inheritance? Part-time work? Those astronomical numbers sometimes make people just give up and think they'll never be able to retire and it's not true. There are many variables and unforeseen circumstances that you can't plan for really. You should have a plan and do your best. Once you do that, you can't do any more. Don't be discouraged by this high number and don't think you have to live a totally empty life now in order to put everything into future savings. That figure isn’t unrealistic but it doesn’t account for the fact that you may have a pension or social security income to offset. Also, does your plan consider inheritance? Part-time work?

Those astronomical numbers sometimes make people just give up and think they’ll never be able to retire and it’s not true. There are many variables and unforeseen circumstances that you can’t plan for really. You should have a plan and do your best. Once you do that, you can’t do any more. Don’t be discouraged by this high number and don’t think you have to live a totally empty life now in order to put everything into future savings.

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