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Conversationalist

Re: I"m concerned about outliving my nest egg in retirement. You're not??

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Message 11 of 17

I don't spend principal. I spend cash flow. I don't care about the value of my portfolio.  I'm invested for the next 150 years. If the market goes up,my kids will get a little more. Down, less. No money in bonds, all stocks. I focus on stretching cash flow and reinvest part of it.  Thanks to AARP my social security with go down by 25% in 18 years.  I'll have to deal with that.

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Treasured Social Butterfly

Re: I"m concerned about outliving my nest egg in retirement. You're not??

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Message 12 of 17

@lilac77 - I'm not going to get myself all upset based on campaign rhetoric or rumors. I think that President Trump will want to do the right thing by everyone here, and his plans will be better thought-out & moderate, than his campaign comments.


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Info Seeker

Re: I"m concerned about outliving my nest egg in retirement. You're not??

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Message 13 of 17

I'm afraid the next administration is going to take away our social security and medicare.  I know I won't get much--I worked overseas--but I really worry about the millions who will suffer if this happens. What do you think?

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Treasured Social Butterfly

Re: I"m concerned about outliving my nest egg in retirement. You're not??

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Message 14 of 17

d72676r wrote:

Help.  I'm not retired yet but I am doing some research and planning now.  I would like to hear from existing retirees (not any financial planners please) who are living mostly on their nest egg (401k, ira and social security,.).    I am concerned that all of the planners and tools give a false sense of security.  What if stock holdings all plummet 50% or more after I retire?  What if inflation hits double digits for an extended period of time and my costs double quickly?  What if my spouse or I are fortunate enough to live until 97 years old?  Even ignoring catastrophic medical cost concerns (assuming my insurance will suffice), how will I get comfortable that my savings will last with no income (assuming I really would not want to go back to work)?  Do you feel similarly?  Please reply...not looking for any solutions but rather validation that these are common concerns and retirees just deal with it.  THANK YOU !

 

 


@d72676r Well it would actually be kind of dumb not to have some concerns over having enough money to last us.  If you are the type of individual to do a lot of planning then your personality pretty much says you will have concerns.  But concerns are different from hopeless fears.  Concerns allow you to concentrate on the areas where you could improve and show ways for you to do better.  There is no way to "guarantee" anything in life so you have to do the best you can and go forward.

Of course I am still working LOL  but not forever.

 

Life's a Journey, not a Destination" Aerosmith
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Trusted Social Butterfly

Re: I"m concerned about outliving my nest egg in retirement. You're not??

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Message 15 of 17

  DW and I have been living on investments for most of 10 years (I retired at 56, no pension). I'm eligible for SS, but have not taken it yet. I'm on medicare --- DW still has expensive, private insurance for another year.

 

    Your concerns are valid. As far as investing, I'm out of equities and mostly have high-yield (a.k.a. 'junk') bonds. We amassed enough wealth, and continue to live relatively frugally, so that we're able to live on the interest and dividends.  I'm averaging around 5% return (in funds, not individual bonds). Point is, there will be no 50% plummet.  I have missed the large returns in the stock market, but have avoided the 'plummets'. Yes, return on investments is tricky. Be conservative.

 

   To help assuage fears (and to do what everyone should be doing), we tracked our expenses, to the penny, for over two years, using a spreadsheet. We then projected and amortized future expenses. For example,  we added hundreds of dollars a month as expenses for purchasing a car, maintaining the house, car repairs. It's the 'big ticket' expenses so many people fail to project. If you're in an apartment, or condo, it's easier. In a house, you have to allow for the $7000 roof. For cars, you have to allow for the $600 brake job, and $500 struts, etc.  If you figure 'worst case' with everything, you can get 'confortable' (or not, and face reality).

 

   Medical is the great unknown. We could project medicare and supplement expenses, but can only guess if we'll need further monies for uncovered medical or nursing home care.

 

   Start with your expense tracking. If you don't know computer spreadsheets, you can do this with paper/pencil and a calculator.  You're absolutely guessing without knowing what your expenses are now, and taking a hard look, and projecting, what expenses might be in the future.  

 

   Please feel free to ask specific questions. There are several posters who look at this thread pretty regularly who have some financial acumen and can provide guidance rather than 'buy this stock' kind of thing.


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Treasured Social Butterfly

Re: I"m concerned about outliving my nest egg in retirement. You're not??

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Message 16 of 17

I am very fortunate in having enough of a nest egg, that I shouldn't worry .. but I think it's normal for all of us to be concerned, if not worried. Growing up with 2 generations that went thru the Depression, I'll always have in the back of my head, that I'm just one big mistake away from becoming a "bag lady" .. although that's almost ridiculous!

 

I see friends complaining about money being tight, or having to work too many hours to cover their expenses .. yet they drive luxury cars & eat out frequently at expensive restaurants .. and I don't get it.

 

I think it's better to worry a little, if that motivates you to plan more & take a conservative approach, than to not worry at all .. and wind up underfunded and/or overextended during your retirement years!


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I"m concerned about outliving my nest egg in retirement. You're not??

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Message 17 of 17

Help.  I'm not retired yet but I am doing some research and planning now.  I would like to hear from existing retirees (not any financial planners please) who are living mostly on their nest egg (401k, ira and social security,.).    I am concerned that all of the planners and tools give a false sense of security.  What if stock holdings all plummet 50% or more after I retire?  What if inflation hits double digits for an extended period of time and my costs double quickly?  What if my spouse or I are fortunate enough to live until 97 years old?  Even ignoring catastrophic medical cost concerns (assuming my insurance will suffice), how will I get comfortable that my savings will last with no income (assuming I really would not want to go back to work)?  Do you feel similarly?  Please reply...not looking for any solutions but rather validation that these are common concerns and retirees just deal with it.  THANK YOU !

 

 

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