Originally Posted by bennenrkc
Dipping into it for maintenence or for living? The general idea behind the 3% is that most financial professionals seem to recommend a 4% withdrawal rate if you want your finances to out live you. Realizing that number relates to individuals around 55+ I thought a 3% would be better and actually have a chance of being there when I do retire assuming we would be working when kids returned to high school. Are my assumptions somewhat right? Could I move to a 4% withdrawal rate? (I know more of a question for financial pro)
Still trying to read more about the green horn mistakes
and what those may be.
Maintenance is living, or said another way what does it matter what you spent it on, it's gone.
What is tough I believe is those inevitable big ticket expenditures that you just can't really budget for, anything form a dis-masting to a blown engine
, bad sail drive, some may be covered by insurance
but surely there will be costs, and I don't think for instance an engine
will be covered.
Replacing a $25,000 engine will kill a budget for years for instance.
You right about needing to see a Pro, and even then how do you vet one?
Working it backwards for someone of your age, you have accumulated significant wealth, surely you know how to manage money
and have someone who is doing that for you already?
I'm in that 55+ category and I went into this assuming a 5% draw, thinking I could get 5% on my money, now a year or so later, I'm seeing that I can't get 5% and that maybe 3% is more inline.
I'd feel more comfortable not touching the principle myself.
I have been trying to determine what it will cost to cruise
and have honestly come up with the flippant answer being the most correct one, it will cost what you have.
If you have 6 or 7 K a month to spend, you will likely spend it, if you only have 3 or 4, then you will likely cut back on things to stay within budget, but I believe you need to have access to a rather large UH-OH fund, you do, lots of people that are cruising on Retirements and Social Security
For many of them an UH-OH means cessation of cruising until they can get back on their feet.
Personally I believe Bebe's cost are more inline with what I expect ours to be.