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  • How To Be Sure You Won't End Up Eating Cat Food In Your Retirement [View article]
    Balanced,

    I hope I will be able to say the same a few years from now.
    Jul 5, 2015. 09:11 PM | 2 Likes Like |Link to Comment
  • How To Be Sure You Won't End Up Eating Cat Food In Your Retirement [View article]
    I want to thank everybody for your input on my article and the discussion about finances. Based on the advice I have received here, and using the amortization tables I was referred to, I have increased my monthly mortgage payments. I was already paying an extra $500 on my primary home. The tables tell me that because of this my mortgage should be paid off within a year or two of my retirement. And by adding a few extra hundred dollars to each payment on my summer home that should also be paid off around the same time. So by age 67ish I'm hoping that my expenses will drop significantly. So hopefully around that time I can stop worrying about cat food and maybe consider moving up to Ramon noodles, or maybe even McDonalds? LOL.

    Thank you all for your help and advice.
    Jul 3, 2015. 07:53 PM | 3 Likes Like |Link to Comment
  • How To Be Sure You Won't End Up Eating Cat Food In Your Retirement [View article]
    as10675,

    "In my opinion your contribution rate is too low. I think it should be a minimum of 20% or $80,000 in 2015. Then increased 3% each year for inflation or $82,400 for 2016 and $84,872 for 2017 rather than holding contribution at a constant $71,000."

    Not possible. At least not right now. But I'm working on it. I agree that saving and retirement is a choice, but when you're married it is a choice that must be made by both spouses. But the priorities are not always the same. At this point I am not willing to sell our houses, and I am also committed to paying for the rest of my kids' college. These are the choices I have made. Our credit card also continues to be used far too much, but again these are the choices we continue to make.

    So for now the $71,000 per year will have to do. Again, if I can't make it work on that large amount of money shame on me. No one should cry for me.
    Jul 3, 2015. 05:07 PM | 2 Likes Like |Link to Comment
  • How To Be Sure You Won't End Up Eating Cat Food In Your Retirement [View article]
    Paul,

    ""It might include identifying and committing to writing the "changes as need be" ""

    I thought that's what I did in the article by seeing what happened if I adjusted my portfolio's yield.
    Jul 3, 2015. 05:01 PM | 1 Like Like |Link to Comment
  • How To Be Sure You Won't End Up Eating Cat Food In Your Retirement [View article]
    L1329,

    "In my dated view, the job of a parent is to be an adult and set a responsible example for their children in order to prepare a child to be a functioning, responsible member of society. Not to be their 'friend' or to build their self esteem."

    I don't think that opinion is so dated. It's just sometimes hard to carry out. And it also takes two parents to have that philosophy. One parent can sabotage the efforts of the other, not on purpose, but because they can't see their children be unhappy.
    Jul 3, 2015. 04:59 PM | 1 Like Like |Link to Comment
  • How To Be Sure You Won't End Up Eating Cat Food In Your Retirement [View article]
    as10675,

    My kids are spoiled. As much as I tried not to let it happen it did anyway. They are good kids, but their expectations are quite rich. Too late to change that. But once they are out of college and on their own they will have to learn for themselves what they can and cannot afford. And we won't be paying for them anymore. So our expenses should decrease.

    I hope.
    Jul 3, 2015. 04:55 PM | 1 Like Like |Link to Comment
  • How To Be Sure You Won't End Up Eating Cat Food In Your Retirement [View article]
    as10675,

    If we can't live on $190,000 a year of spending power then shame on us.
    Jul 3, 2015. 04:52 PM | 1 Like Like |Link to Comment
  • How To Be Sure You Won't End Up Eating Cat Food In Your Retirement [View article]
    RAS,

    What I meant when I questioned what FD meant by "allow for inflation" is that I can't just bump up my expected return just because I know inflation will occur. I can't expect a 8% return over the next 15 years, but then, after thinking about inflation say "well then I better increase that return to 10%." Just because I know inflation will occur does not mean I can turn a knob and ramp up my expected returns.

    If I were talking about my spending power then I would have to allow for inflation. But my actual returns, in dollar values, are independent inflation.
    Jul 3, 2015. 08:38 AM | 1 Like Like |Link to Comment
  • How To Be Sure You Won't End Up Eating Cat Food In Your Retirement [View article]
    FD,

    I think a DGR of 15%, when you take into account dividend reinvestment and new money added to the account, is do-able. Watch for my portfolio updates and we'll see how I do.
    Jul 3, 2015. 02:27 AM | 1 Like Like |Link to Comment
  • How To Be Sure You Won't End Up Eating Cat Food In Your Retirement [View article]
    Mike,

    I agree. Everybody has different income and different needs. Or different desires. I believe I'm rich, but I'm sure Donald Trump would not think I am. It doesn't really matter. What matters is that you choose the goal that is right for you and you come up with an investment plan that gives you a good shot at acheiving that goal. That's what i tried to show in this article. What my goal is and how I plan to get there.
    Jul 3, 2015. 02:21 AM | 1 Like Like |Link to Comment
  • How To Be Sure You Won't End Up Eating Cat Food In Your Retirement [View article]
    FD,

    I don't need to get to $8.6M. If I get to $6M, at a yield of 5% I'll have the $300K in income I'm looking for. I'm sure I'll be fine with that.
    Jul 3, 2015. 02:15 AM | 1 Like Like |Link to Comment
  • How To Be Sure You Won't End Up Eating Cat Food In Your Retirement [View article]
    FD,

    I should allow for inflation? I'm not sure I know what you mean. I understand that there will be inflation, and it will affect my buying power, but I can't just decide to make my portfolio have a larger return just to compensate for inflation. To do so I would have to take on more risk. And that is something I'm not willing to do. My DGR will be greater than the rate of inflation (I HOPE!). I'll have to be satisfied with that.
    Jul 3, 2015. 02:13 AM | 1 Like Like |Link to Comment
  • How To Be Sure You Won't End Up Eating Cat Food In Your Retirement [View article]
    FD,

    If my portfolio pays me a yield of 5%, which gives me $300K in income, and the market drops, I will still get that $300K of income, as long as my stocks don't cut their dividends. Obviously this is something I will monitor quite closely. I'm not sorried at all about the 4% rule or about running out of money. But I will make changes as need be to make sure I don't.
    Jul 3, 2015. 02:08 AM | 2 Likes Like |Link to Comment
  • How To Be Sure You Won't End Up Eating Cat Food In Your Retirement [View article]
    Tough love is not so easy. lol.

    I told my kids I would pay for their college. I'm sticking to that and am proud to doso. For me it is the right thing to do. Beyond that they know they have to become self sufficient.
    Jul 3, 2015. 02:01 AM | 3 Likes Like |Link to Comment
  • How To Be Sure You Won't End Up Eating Cat Food In Your Retirement [View article]
    ejmail,

    I guess it comes down to the question of what is essential, vs. what are things that we just like to have. And what am I willing to give up? In the end, as I've thought about people's comments these last few days I've come to realize that keeping my family happy is more important than increasing the size of my retirement account. I will still try to save more, and I will still try to teach my children about fiscal discipline, but I'm not going to cause any disharmony over it. iIt's a balnace I'll have to try to find.

    I applaud you for what you did on your less than 70K income. I wish I had made some different choices a few years ago, especially in how much we paid for our house, but that can't be changed now. When I started making good money we raised our standard of livning. I wish we had not raised it quite so much. But we're still not in any economic distress, and we're happy. And I'm sure we'll have a nice retirement as well.
    Jul 3, 2015. 01:59 AM | 4 Likes Like |Link to Comment
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