I tried to be quite conservative in our planning. We are about 4.5 years into retirement at this point (retired in 2020 during the pandemic). We've been spending about 10-15% less than we planned to- I think some of this was due to the pandemic limiting travel early on. Also, we may just have estimated on the high side. We don't feel like we have been scrimping. I think we may be ramping up travel in the next few years so we will see.
We made pretty conservative estimates of market returns and the actual returns have turned out to be much better than the estimates. No guarantees that this will continue and a good downturn could wipe out this "bonus" so we're not changing here.
One thing I have learned to appreciate is that there is a lot of imprecision in these long term plans since so much is based on estimates/predictions of things like inflation, market returns, interest rates, etc.- I'm just trying to get them approximately right and will adjust if the need arises.
We made pretty conservative estimates of market returns and the actual returns have turned out to be much better than the estimates. No guarantees that this will continue and a good downturn could wipe out this "bonus" so we're not changing here.
One thing I have learned to appreciate is that there is a lot of imprecision in these long term plans since so much is based on estimates/predictions of things like inflation, market returns, interest rates, etc.- I'm just trying to get them approximately right and will adjust if the need arises.
Statistics: Posted by IowaFarmBoy — Mon Nov 18, 2024 6:45 am — Replies 27 — Views 2409