No. of Recommendations: 4
While I find the 4% rule useful as a general guide to be sure I'm not getting extravagant, I developed a spreadsheet of my own long ago. It allows me to plan not only for normal expenses but also include special events in my life like transferring from individual health insurance to Medicare or replacing my car every few years.

But what has gotten me through two nasty recessions since I retired is using a little common sense. When markets are down sharply I've cut back a little on expenses. I've found it really isn't hard to trim 5%. 10% would involve a little pain but could be done if necessary. Fortunately I've always lived comfortably but never felt compelled to have the biggest house on the block or the most toys. So my money is mostly in liquid assets that cost nothing to maintain instead of bricks, mortar and steel. The value and income stream may fluctuate with the economy but I'm not struggling to pay upkeep and real estate taxes on a depreciating asset. My parents would be pleased to know I was paying more attention to their example than they thought.
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.