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Subject:  Re: Others with un-retirement? Your ratio? Date:  11/11/2007  9:58 AM
Author:  salecat Number:  1174 of 1911

I've found this thread interesting since I'm considering retirement. I'm 59 and have 23-25 times expected expenses in the nest egg. Since I haven't done a real good job of categorizing expenses it's hard to go back for the last year and do so. For instance when we pay for groceries using a debit card sometime we get cash, so adding up grocery expenses doesn't necessarily tell me what we spent on groceries since we dispose of receipts once the checking account is balanced. Also DD is a senior in college, and while she pays most of her expenses there are still some DW & I pay. That will hopefully go away when she graduates or soon thereafter.

At any rate I have a pretty good idea of expenses. The other issue for me is what do I do when I retire. That's a little off topic here so I'll assume for now that I will find ways to fill that time. However, the on-topic part of this paragraph is that I've reduced my working hours over the last 3-4 years to about 60-75% of "full time". I have my own 1-person computer consulting business so I can control my hours to some extent. DW works but not for pay (at least I think that's the politically correct way to say she a homemaker and volunteer). I have been able to do cut back so far without dipping into our nest egg. I'm planning next year to reduce my hours a little more and give myself a couple of full days off each week to see how I adjust. This will require dipping a little into the nest egg (1 - 1.5%).

Also since my company reimburses all of our medical expenses, working part time will allow us to continue that until I qualify for SS. I may rethink this issue but since that is such a volatile expense I would rather my company pay for it at least for now.

When the time comes for full retirement (hopefully next 2-3 years) I think we will be sort of like Mr. & Mrs. RetiredVermonter. DW and I are diligent about not going into debt. We don't spend on many extravagances. We have traveled more than usual in the last 3 years due in part to DD spending a semester and a summer in Seville. But that won't continue. We will have a budgeted amount to spend and we will just tighten the belt rather than spend more (except for emergencies). Like I said we're pretty much that way now.

So in full retirement I plan to withdraw no more than 3 - 3.5% of the nest egg each year. I guess we'll find out how all this really works out but that has been my thought process so far.

Thanks again for the thought-provoking posts.

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