I am wondering approximately how many years I can stick with this plan before I have to sell my house and downsize to get some equity out.
A big question is how much you would be willing to lower your spending and still be comfortable as your portfolio balance gets lower.
You also did not say what your house is worth. If you own a multi-million dollar house your situation is a lot different than if you own a $300K house.
That would be $150K so with $48K a year in Social Security that would be $198K a year.Looks like 2026 I will need to take out 30K (taxes) plus 120K (10K/mo).
The numbers are sort of arbitrary but if I was in your situation I might consider something like a million dollars to be my core retirement money and the additional money to be my splurge money.
Academic studies have show that in the past you could start out a 30 year retirement by spending about 4% of your portfolio a year but there are lots of assumptions and qualification to that. That means that with million dollar portfolio you can only spend $40K a year. With your $48K in Social Security that would provide $98K a year which is likely enough to be a lot more than comfortable on since it sounds like you have a paid off house.
That would leave you another million dollars to fund your more expensive lifestyle. One option would be to buy a ten year ladder of TIPS where you have $100K mature each year for the next ten years when you would be 80.
If a lot of this money is going towards travel then a possible way to reduce your travel expenses a LOT would be to stay longer at each place you go to and maybe rent a place for a month at a time. Often a monthly rental will be a lot less expensive and may not be subject to expensive hotel taxes which may not apply to rentals which are over 30 days. I once took a class in a different city where I rented a studio condo for six weeks and got a very good rate on it and I did not have to pay the hotel taxes so it cost less than half per day than comparable place would have cost for rental of less than 30 days.
Statistics: Posted by Watty — Sun Jul 14, 2024 11:18 am — Replies 8 — Views 563