<<Kath:

I guess I just break rules by my nature. <s>

I did take some out this year because we NEEDED some to finish our addition! However, it is already climbing back up toward where it was when I started withdrawing, so... I guess it's not so bad.

In our case, Social Security (mostly) and a small pension pretty much cover retirement living expenses, except for major purchases and/or a construction project, of course, so occasional withdrawals (when we are not taking any out otherwise) don't seem that bad.

>>


I think your approach to funding your retirement illustrates the limitations of the theoretical descriptions given in the article.

There is a lot to be said for reasonableness, flexibility and prudence in managing your finances in retirement. If you have expenses like your addition that you deem to be necessary or wise, it probably makes good sense to go ahead and fund them, regardless as to what a "safe withdrawal rate" might suggest.

Other years, you might find it wise to spend less than the "SWR" might suggest to make up for earlier spending or to respond to high inflation rates, high taxes or poor investment returns.

Wisdom and good judgement are qualities which permit a lot of people to retire early. I suspect that they are qualities which will lead to a better life in retirement than the application of rigid rules about a Safe Withdrawal Rate, although such finding are no doubt a useful guide to behavior.



Seattle Pioneer