![]() ![]() For example: how do I evaluate and weigh the pros and cons of different options, like starting Social Security at age 62 vs. True, but there are still plenty of unanswered questions. In my SWR simulation toolkit (see Part 28), there is a feature that allows you to model those supplemental cash flows and study how they would impact your safe withdrawal rate calculations. Of course, if you are a long-time reader of my blog and my SWR series you may wonder why I would write a new post about this. Some retirees opt for an annuity, i.e., transform part of their assets into a guaranteed, lifelong cash flow. ![]() On the menu today is an issue that will impact most retirees: we all likely receive supplemental cash flows in retirement, such as corporate or government pensions, Social Security, etc. See the landing page of this series here for an intro and a summary of all posts I’ve written so far. Welcome to another installment of my Safe Withdrawal Rate Series. 57 Comments Evaluating Annuities, Pensions, and Social Security – SWR Series Part 56 So how would I explain or even pitch FIRE to someone new to the community? Let’s take a look… Continue reading “The Basics of FIRE” → Posted on Maby Posted in Safe Withdrawal Rates Tagged Asset Allocation, bonds, frugality, investing, personal finance, safe withdrawal rate, Taxes. That series is targeted at folks already retired or nearing early retirement. But it’s also the deep end of the pool, and I would likely scare away any new recruits. And my Safe Withdrawal Rate Series? Great stuff. I’m not going to dump a reading/listening list of 20 different posts/shows on 18 different blogs/podcasts on someone new to the community. But where’s a good overview, all in a simple and comprehensive post to give a one-stop overview of what FIRE is and how one can pull it off? I’ve come across a lot of good information, but it’s all in bits and pieces and here and there. Until now, I’ve outsourced that task and simply referred to the Links Page. 120 Comments March 2023 Market and Moral Hazard MusingsĪfter seven years of blogging in the personal finance and FIRE community, I realize that there’s one type of post I’ve always avoided: How to explain FIRE to a complete newbie. Lots of questions! Let’s take a look… Continue reading “Accounting for Homeownership in (Early) Retirement – SWR Series Part 57” → Posted on ApJby Posted in Safe Withdrawal Rates Tagged Asset Allocation, bonds, equities, finance, homeownership, investing, personal finance, Real Estate, safe withdrawal rate, Sequence of Return Risk, simulations. But what if you are already retired? What are some of the benefits of homeownership in the context of (early) retirement? Does homeownership reduce Sequence Risk? Do homeowners enjoy a lower inflation rate in retirement? If so, by how much can homeowners raise their safe withdrawal rate? How do we properly account for homeownership (with and without a mortgage) in the SWR simulation toolkit? I’ve already made the case that not just rental properties but even homeownership can be a great tool in building assets (“ See that house over there? It’s an investment!“). Please check out the SWR landing page for a summary of and a link to the other posts. Welcome to a new installment of the Safe Withdrawal Rate Series. 91 Comments May 2023 Macro and Market Musings: Monetary Policy and Inflation Let’s take a look… Continue reading “Flexibility is Overrated – SWR Series Part 58” → Posted on JJby Posted in Safe Withdrawal Rates Tagged Asset Allocation, bonds, equities, finance, Flexibility, investing, personal finance, safe withdrawal rate, Sequence of Return Risk, simulations. Propose a better method for modeling flexibility and gauging its impact on safe withdrawal amounts.Comment on a recent post by two fellow personal finance bloggers and showcase some of the weaknesses of their approach.Provide a simple chart and a few back-of-the-envelope calculations to demonstrate the flexibility folly.In today’s post, I like to accomplish three things: We can throw out the 4% Rule and make it the 5.5% Rule. If we are flexible – so we are told – we don’t have to worry much about sequence risk. It’s almost like a personal finance “zombie” topic that, after I thought I put it to rest once and for all, always comes back when you least expect it. This month, I initially planned to write about the effects of timing Social Security in the context of safe withdrawal simulations. Fifty-eight parts now, and the new ideas come faster than I can write posts these days. I wonder if I’ll ever run out of material for the Safe Withdrawal Series.
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