Author Topic: Can Joe Shmoe retire?  (Read 4225 times)

DrF

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Can Joe Shmoe retire?
« on: January 28, 2015, 03:40:09 PM »
Thought this was funny. Saw it when I was logging into Fidelity.

https://www.fidelity.com/insights/retirement/can-you-afford-to-retire-early-2015

waltworks

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Re: Can Joe Shmoe retire?
« Reply #1 on: January 28, 2015, 03:57:06 PM »
Jesus. Joe was done a decade ago...

-W

skyrefuge

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Re: Can Joe Shmoe retire?
« Reply #2 on: January 28, 2015, 08:13:54 PM »
The worst part is that the question-asker proposes 3% as the SWR, and there is absolutely no pushback on that number or even a single mention of a 4% SWR.

Sure, usually the pessimistic (profit-seeking) adviser will, in their spiel about where SWRs come from, suggest that maybe 4% is NO LONGER SAFE, but they'll at least mention the 4% standard.

This is the first time I've ever seen 3% mentioned without it being positioned merely as an alternative to 4%. Kinda sad.

PencilThinMust

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Re: Can Joe Shmoe retire?
« Reply #3 on: January 28, 2015, 08:23:45 PM »
Great article of bullshit!

arebelspy

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Re: Can Joe Shmoe retire?
« Reply #4 on: January 29, 2015, 11:38:08 AM »
At least the author said yes (with caveats).  I've seen much worse, where the author says no when it's ridiculously obvious to everyone else that they should have been done long before.
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hodedofome

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Re: Can Joe Shmoe retire?
« Reply #5 on: January 29, 2015, 12:46:07 PM »
Most people's lifestyle is not anywhere close to MMM, so yes $2.7 million doesn't seem like that much. When you have a $500k house, private school, college tuition, ski trips, beach trips, and a brand new Tahoe to pay for, you're talking about well over $100k/yr in expenses.

It's hard to cut back when all your friends are spending money like water.

MrMoogle

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Re: Can Joe Shmoe retire?
« Reply #6 on: January 29, 2015, 07:16:53 PM »
"After all, if you're really able to cover your annual living expenses by drawing roughly 3% ($81,000 in your case) from your nest egg ....

And let's not forget you've still got those two daughters to raise. Children can wreak havoc on a budget, especially when they move into their teen years. No wonder the U.S. Department of Agriculture recently estimated the average cost of raising a child at $245,000."

Wouldn't those daughters be considered under his current living expenses?  Don't forget about those!!!

MetalCap

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Re: Can Joe Shmoe retire?
« Reply #7 on: January 30, 2015, 06:39:13 AM »
Quote
It's hard to cut back when all your friends are spending money like water.

On an aside, we really need to stop spending water like water.

An why is everyone afraid of 2 teen girls?  They aren't going to spend 10's of thousands of your dollars unless you let them. They aren't going to force you at gunpoint (at least hope not)

josstache

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Re: Can Joe Shmoe retire?
« Reply #8 on: January 30, 2015, 07:22:57 AM »
You will need to provide them with a generous dowry when they reach marriageable age of 14 or so, certainly if they are the homely sort.

UnleashHell

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Re: Can Joe Shmoe retire?
« Reply #9 on: January 30, 2015, 07:56:05 AM »
You will need to provide them with a generous dowry when they reach marriageable age of 14 or so, certainly if they are the homely sort.

lol

That's the cheap option!!

Scandium

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Re: Can Joe Shmoe retire?
« Reply #10 on: February 02, 2015, 12:17:57 PM »
"After all, if you're really able to cover your annual living expenses by drawing roughly 3% ($81,000 in your case) from your nest egg ....

And let's not forget you've still got those two daughters to raise. Children can wreak havoc on a budget, especially when they move into their teen years. No wonder the U.S. Department of Agriculture recently estimated the average cost of raising a child at $245,000."

Wouldn't those daughters be considered under his current living expenses?  Don't forget about those!!!

Yes that's pretty silly reasoning. It's not like you get a bill for $245,000 the day they turn 18. I remember looking at the USDA study (btw, why the USDA? Are kids a form of livestock now?). It mention things like having a larger house and car to have room for the kids, and increased food spending. Expenses that would certainly be included in current spending.