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Author: 2old4bs Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35272  
Subject: Re: Meditation on Year End Addition Date: 1/15/2006 12:59 PM
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...during the endless chatter that now accompanies figure skating

OT: I was so aggravated--ABC spent something like the first 45 minutes in 'talk' and 'background'--I kept switching to other stations b/c I couldn't stand it. I even mentioned to my viewing friend, "The show's description does say "figure skating" doesn't it? So when are we actually going to see someone figure skating, and not just 5 sec clips from previous competitions sandwiched between talk and more talk?" (At least you made better use of the time ;-)

If the traders are right about inflation (2.4%) and this applies to our personal inflation (not bloody likely), we're looking at the possibility of less than 2.5% initial withdrawal rate, not including Social Security or home/property.

If the traders are right, I'd be much more comfortable with my projections also. In any case, isn't the real issue what our estimates of return 'after inflation' are? I think we had this discussion once before--I'm now using 2.4%. If inflation turns out to actually be 2.5%, this would translate to an estimated return after inflation of 4.33% for me. With that actual rate of return I could end up with a 2 million in my portfolio at 95 (hardly likely to happen, since I would definitely spend more if my returns were actually that good ;-)

Sadly, for most people, "enough" is almost impossible to achieve simply because there isn't enough money left over from living a comfortable or less than comfortable life to save for retirement, though I have to say I know a lot of upper middle-class folks who are going to start retirement with maybe 10 times (or less) their pre-retirement after-paycheck expenses, because they think what they spend money on now qualifies as necessities for living a comfortable life.

You lost me in the last part of that statement. Are you saying they're starting retirement with savings equal to 10 times their annual current expenses? IOW, if their current annual expenses are $80K, their starting nestegg will be $800K? If so, how do they justify this? Perhaps they have pensions? My estimated expenses are about $46K, add a number like $4K in taxes, subtract the maximum SS, and I figure I still need a nest egg of at least $900K. My estimated expenses in retirement differ from my actual current expenditures in only 2 major areas--no mortgage payment, but higher medical expenses (which almost make up for the mortgage).

Or am I misreading what you said?

2old

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