Quote:
Originally Posted by BobKat1
After 6 1/2 years of retirement, we still don't know what we need to live on! It varies annually depending on any major purchases, the amount of travel etc.
We've always lived within or even below our means and continue to do so in retirement. The big difference makers for us are no mortgage, no car payments and no debt. We've been using a good financial planner for 3 1/2 years and survived the recession in pretty good shape.
I agree the 4% per year withdrawal limit is a good starting point.
Good luck...
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We're in the same boat as you, although we've done our own financial planning. We have no debt at all. Our income consists of 2 pensions, one social security and income from investments, and is running about 72% of what it was during working years. And when the other social security kicks in we'll be probably 80-90% of pre-retirement income. We're finding that, as in the working years, we just don't spend it all. Sometimes your lifestyle will change in that you have more free time, so you'll travel more and use more money for entertainment and possibly health related expenses, so your needs are more than 70% of pre-retirement income. Really depends on your lifestyle and pre-retirement income level, and "wants" vs. "needs". We see some people living what we call pretty extravagantly, and we've never had that desire. Of course, we think nothing of taking huge vacations and traveling all over the globe, while other people have no interest in that either. Everyone's spending habits are different.