Thanks Neil. Am a big fan of Christine Benz at Morningstar and her “bucket strategy” for retirees. At retirement I reduced my stock allocation to 65% and “annuitized” my pension into a monthly annuity. I maintain “cash’ and “short term bonds’ in my portfolio to allow me to weather out a 3-4 year bear market so I will never have to sell equities at depressed values.
R—- Big fan of your columns on Humble Dollar. When I left my employer I had stock options that helped me, along with a wife that works part time. At age 64 my pension had grown to $925,000 so I annuitized it into a SPIA at a strong pay-out %. Additionally I began taking Social Security as my wife qualified for spousal benefit given her age (under the “old rules’). Additionally, I had retire health care insurance support which was a huge plus from 56 until I went on to Medicare at 65.
Rand.. Very good observation. I feel fortunate as to the timing of stock market advances during my working career and early retirement (1982-2022). Although the market suffered from two substantial bear markets (dot com bust in 2000 and financial crisis in 2008), the market recovered substantially from both. “Sequence of Returns Risk” certainly can effect those retiring in the past year or two given what has happened to the markets in 2022 and what the big financial institutions (Morningstar and others) are predicting over the next decade. I’m a big believer that stock market returns over the next decade will be lower than historical averages and have reduced my portfolio withdrawal rate intentions from 4.0% to 3.5%.
Andrew.. Thanks for your kind words. I’m fortunate to have purchased my home in Playa del Rey about a mile from the beach. Having grown up in the San Fernando Valley I feel fortunate to not live in one of LA’s “hot spots.”
Greetings HD readers,
Okay, I am very curious… what are the costs of a reverse mortgage? Have they come down? The last time I looked they were egregious. Now that current interest rates have shot up, I am only imagining they have substantially climbed. Without reading Pfau’s book can anyone given the current “Bottomline” on reverse mortgage costs? For simplicity, let’s assume someone has paid off a million dollar home and wants to borrow against it. What are the closing costs and interest rates? Are these variable (most likely) or fixed? Thank you!
Comments
Thanks, Nate, for your nice words. Our daughter is a thriving senior at University of Oregon. GO Ducks!!!
Post: Early Start Early End
Link to comment from September 4, 2022
Thanks Neil. Am a big fan of Christine Benz at Morningstar and her “bucket strategy” for retirees. At retirement I reduced my stock allocation to 65% and “annuitized” my pension into a monthly annuity. I maintain “cash’ and “short term bonds’ in my portfolio to allow me to weather out a 3-4 year bear market so I will never have to sell equities at depressed values.
Post: Early Start Early End
Link to comment from September 4, 2022
R—- Big fan of your columns on Humble Dollar. When I left my employer I had stock options that helped me, along with a wife that works part time. At age 64 my pension had grown to $925,000 so I annuitized it into a SPIA at a strong pay-out %. Additionally I began taking Social Security as my wife qualified for spousal benefit given her age (under the “old rules’). Additionally, I had retire health care insurance support which was a huge plus from 56 until I went on to Medicare at 65.
Post: Early Start Early End
Link to comment from September 4, 2022
Rand.. Very good observation. I feel fortunate as to the timing of stock market advances during my working career and early retirement (1982-2022). Although the market suffered from two substantial bear markets (dot com bust in 2000 and financial crisis in 2008), the market recovered substantially from both. “Sequence of Returns Risk” certainly can effect those retiring in the past year or two given what has happened to the markets in 2022 and what the big financial institutions (Morningstar and others) are predicting over the next decade. I’m a big believer that stock market returns over the next decade will be lower than historical averages and have reduced my portfolio withdrawal rate intentions from 4.0% to 3.5%.
Post: Early Start Early End
Link to comment from September 4, 2022
Thanks for your words. Would love to check out your YouTube videos.. was is your link to YouTube?
Post: Early Start Early End
Link to comment from September 4, 2022
Andrew.. Thanks for your kind words. I’m fortunate to have purchased my home in Playa del Rey about a mile from the beach. Having grown up in the San Fernando Valley I feel fortunate to not live in one of LA’s “hot spots.”
Post: Early Start Early End
Link to comment from September 4, 2022
Nice! Sounds like we live parallel existences….
Post: Early Start Early End
Link to comment from September 4, 2022
Greetings HD readers, Okay, I am very curious… what are the costs of a reverse mortgage? Have they come down? The last time I looked they were egregious. Now that current interest rates have shot up, I am only imagining they have substantially climbed. Without reading Pfau’s book can anyone given the current “Bottomline” on reverse mortgage costs? For simplicity, let’s assume someone has paid off a million dollar home and wants to borrow against it. What are the closing costs and interest rates? Are these variable (most likely) or fixed? Thank you!
Post: Home Rich Cash Poor
Link to comment from July 2, 2022