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Retirement Discussions / FIRE Wannabees
|Subject: Re: Life Expectancy||Date: 8/8/2003 10:49 AM|
|Author: workwayless||Number: 197 of 5139|
This good question was asked in another thread. Will life expentancy affect your plans for early retirement?
I like to ignore project life expectancy that's written in the media. Yes, modern medicine and better nutrition may lengthen overall life expectancy, but I prefer to look at family history. In both sides of my family, it is not uncommon to live into your 90s. My great grandmother lived until 107. Therefore, I am planning on living a long time. If something were to happen to me, my kids will get a windfall.
Phantomdiver mentioned a fudge factor in her calculations. You can use SWR that has been calculated on REHP. But the longer you live, the more uncertainty that the assets you withdrawl based on SWR will support your living expenses. Medical costs can inflate faster than expected or changes in tax laws can affect your investments. Therefore, you may need a bigger fudge factor for increased life expectancy.
Yes life expectency absolutely affected my plans.
I too looked at my family history and also my medical history. In my case I am expected to live much shorter than average lifespan. This gives me the ability to have a much higher SWR if I choose.
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