Nice retirement for a sweet, humble, smart Wal Mart couple

[Andylusion]

Just initiated a 401K rollover for a very sweet couple, both aged 63. They both spent the last 17 or so years working at Wal Mart. Not in corporate, but in regular ol' stores. Stocking shelves, receiving, some management, you name it.

They said "we were just careful with our money, we never had to buy the newest stuff, we lived within our means and stayed humble with our money". That's their big secret.

Totals of their 401K's:
Husband: $287,729.57
Wife: $211,898.10

Separate Roth IRA's at Edward Jones:
Husband: $42,114.52
Wife: $43,001.58

Total retirement portfolio: $584,743.77

After our meeting today, they left for a week-long camping and fishing trip with friends, celebrating the start of their comfy retirement. Just bought a cool new red Honda four-wheel-type thing for the trip. They like driving through streams.

So long Wal Mart, hello striped bass.

.

seems like a lot of money but at todays interest rates how do you live on it?

They both have full social security and we've set them up at a 5% annual withdrawal. Totals about $56,000 a year for the rest of their lives plus cost of living increases, with plenty of emergency funds.

That's more than they've been making.

Portfolio invested conservatively to replenish withdrawals.

Easy as pie.

.

Very nice. One question: How many years does this income plan last?

It's built to last forever, with the income increases I mentioned. The growth in the portfolio, over time, will replenish withdrawals.

When they're gone, it goes to the kids.

I have clients who have been taking 5%+ income for years and have more in their account than when they began.

.

If you invest intelligently, you can live off the Return on Investment (ROI), forever, and never run out of money.

It just matters that you don't withdraw more than the ROI. Everyone should be retiring with money. $100 a month, and you can actually retire without being a ward of the state.

 

[boedicca]

Just initiated a 401K rollover for a very sweet couple, both aged 63. They both spent the last 17 or so years working at Wal Mart. Not in corporate, but in regular ol' stores. Stocking shelves, receiving, some management, you name it.

They said "we were just careful with our money, we never had to buy the newest stuff, we lived within our means and stayed humble with our money". That's their big secret.

Totals of their 401K's:
Husband: $287,729.57
Wife: $211,898.10

Separate Roth IRA's at Edward Jones:
Husband: $42,114.52
Wife: $43,001.58

Total retirement portfolio: $584,743.77

After our meeting today, they left for a week-long camping and fishing trip with friends, celebrating the start of their comfy retirement. Just bought a cool new red Honda four-wheel-type thing for the trip. They like driving through streams.

So long Wal Mart, hello striped bass.

.

seems like a lot of money but at todays interest rates how do you live on it?

They both have full social security and we've set them up at a 5% annual withdrawal. Totals about $56,000 a year for the rest of their lives plus cost of living increases, with plenty of emergency funds.

That's more than they've been making.

Portfolio invested conservatively to replenish withdrawals.

Easy as pie.

.

Very nice. One question: How many years does this income plan last?

It's built to last forever, with the income increases I mentioned. The growth in the portfolio, over time, will replenish withdrawals.

When they're gone, it goes to the kids.

I have clients who have been taking 5%+ income for years and have more in their account than when they began.

.

That's wonderful. With interest rates at ZIRP, it's increasingly difficult to find 5% returns that aren't risky. Congrats to your clients.

 

[HereWeGoAgain]

Just initiated a 401K rollover for a very sweet couple, both aged 63. They both spent the last 17 or so years working at Wal Mart. Not in corporate, but in regular ol' stores. Stocking shelves, receiving, some management, you name it.

They said "we were just careful with our money, we never had to buy the newest stuff, we lived within our means and stayed humble with our money". That's their big secret.

Totals of their 401K's:
Husband: $287,729.57
Wife: $211,898.10

Separate Roth IRA's at Edward Jones:
Husband: $42,114.52
Wife: $43,001.58

Total retirement portfolio: $584,743.77

After our meeting today, they left for a week-long camping and fishing trip with friends, celebrating the start of their comfy retirement. Just bought a cool new red Honda four-wheel-type thing for the trip. They like driving through streams.

So long Wal Mart, hello striped bass.

.

seems like a lot of money but at todays interest rates how do you live on it?

You supplement it with SS.

 

[Andylusion]

Just initiated a 401K rollover for a very sweet couple, both aged 63. They both spent the last 17 or so years working at Wal Mart. Not in corporate, but in regular ol' stores. Stocking shelves, receiving, some management, you name it.

They said "we were just careful with our money, we never had to buy the newest stuff, we lived within our means and stayed humble with our money". That's their big secret.

Totals of their 401K's:
Husband: $287,729.57
Wife: $211,898.10

Separate Roth IRA's at Edward Jones:
Husband: $42,114.52
Wife: $43,001.58

Total retirement portfolio: $584,743.77

After our meeting today, they left for a week-long camping and fishing trip with friends, celebrating the start of their comfy retirement. Just bought a cool new red Honda four-wheel-type thing for the trip. They like driving through streams.

So long Wal Mart, hello striped bass.

.

seems like a lot of money but at todays interest rates how do you live on it?

They both have full social security and we've set them up at a 5% annual withdrawal. Totals about $56,000 a year for the rest of their lives plus cost of living increases, with plenty of emergency funds.

That's more than they've been making.

Portfolio invested conservatively to replenish withdrawals.

Easy as pie.

.

Very nice. One question: How many years does this income plan last?

It's built to last forever, with the income increases I mentioned. The growth in the portfolio, over time, will replenish withdrawals.

When they're gone, it goes to the kids.

I have clients who have been taking 5%+ income for years and have more in their account than when they began.

.

That's wonderful. With interest rates at ZIRP, it's increasingly difficult to find 5% returns that aren't risky. Congrats to your clients.

You are never going to get good returns with investments that "aren't risky".

It's actually very easy to find good returns. You just have to accept some amount of risk.

IF my mutual fund has been doing 13% year over year, for 40 years.... is their risk? Sure. But is that risk acceptable given a 40 year track record? Sure. But you don't put all your eggs in one basket. So I have a second fund, that's gotten 11.8% over 30 years. Is there a risk? Sure. But is that risk acceptable given a 30 year track record? Yes.

Many people would be far more wealthy, if they spent less time trying to prevent all risk, and more time investment diversely.

 

[EdwardBaiamonte]

seems like a lot of money but at todays interest rates how do you live on it?

They both have full social security and we've set them up at a 5% annual withdrawal. Totals about $56,000 a year for the rest of their lives plus cost of living increases, with plenty of emergency funds.

That's more than they've been making.

Portfolio invested conservatively to replenish withdrawals.

Easy as pie.

.

Very nice. One question: How many years does this income plan last?

It's built to last forever, with the income increases I mentioned. The growth in the portfolio, over time, will replenish withdrawals.

When they're gone, it goes to the kids.

I have clients who have been taking 5%+ income for years and have more in their account than when they began.

.

That's wonderful. With interest rates at ZIRP, it's increasingly difficult to find 5% returns that aren't risky. Congrats to your clients.

You are never going to get good returns with investments that "aren't risky".

It's actually very easy to find good returns. You just have to accept some amount of risk.

IF my mutual fund has been doing 13% year over year, for 40 years.... is their risk? Sure. But is that risk acceptable given a 40 year track record? Sure. But you don't put all your eggs in one basket. So I have a second fund, that's gotten 11.8% over 30 years. Is there a risk? Sure. But is that risk acceptable given a 30 year track record? Yes.

Many people would be far more wealthy, if they spent less time trying to prevent all risk, and more time investment diversely.

All investments over time yield the same return. The high risk cancels out the high interest. The best professionals at hedge funds and mutual funds do no better than monkeys throwing darts.

 

[Mac1958]

.

Here's some food for thought for you: From my perspective (the guy who's actually investing and managing the money off of which clients are going to live), the risk is not in the individual security or portfolio. The risk is that the client is going to panic when the investments go down (and I promise you they will at times) and want to cash out, missing out on the upswing later, wrecking my plan.

The portfolio of the clients in the OP will go down at times, but over time, assuming I can talk them off the ledge now and then, they're going to do just fine, with room to spare.

.

 

[Politico]

Just initiated a 401K rollover for a very sweet couple, both aged 63. They both spent the last 17 or so years working at Wal Mart. Not in corporate, but in regular ol' stores. Stocking shelves, receiving, some management, you name it.

They said "we were just careful with our money, we never had to buy the newest stuff, we lived within our means and stayed humble with our money". That's their big secret.

Totals of their 401K's:
Husband: $287,729.57
Wife: $211,898.10

Separate Roth IRA's at Edward Jones:
Husband: $42,114.52
Wife: $43,001.58

Total retirement portfolio: $584,743.77

After our meeting today, they left for a week-long camping and fishing trip with friends, celebrating the start of their comfy retirement. Just bought a cool new red Honda four-wheel-type thing for the trip. They like driving through streams.

So long Wal Mart, hello striped bass.

.

seems like a lot of money but at todays interest rates how do you live on it?

Quite easily.

 

[Ravi]

Just initiated a 401K rollover for a very sweet couple, both aged 63. They both spent the last 17 or so years working at Wal Mart. Not in corporate, but in regular ol' stores. Stocking shelves, receiving, some management, you name it.

They said "we were just careful with our money, we never had to buy the newest stuff, we lived within our means and stayed humble with our money". That's their big secret.

Totals of their 401K's:
Husband: $287,729.57
Wife: $211,898.10

Separate Roth IRA's at Edward Jones:
Husband: $42,114.52
Wife: $43,001.58

Total retirement portfolio: $584,743.77

After our meeting today, they left for a week-long camping and fishing trip with friends, celebrating the start of their comfy retirement. Just bought a cool new red Honda four-wheel-type thing for the trip. They like driving through streams.

So long Wal Mart, hello striped bass.

.

How much did you make off of them?

 

[Boss]

In the mid 80s, my company entered an agreement with Walmart to do vendor services. We were a young upstart company and Walmart was just taking off. The deal was very creative and gave us all a considerable amount of Walmart stock. I kept my shares through three splits and finally cashed them in after Sam Walton passed away. Value was over $500k.

The recent liberal War on Walmart is an offshoot of the Occutard Movement. These people are morons who have bought into the propaganda, the manipulated data, the outright misconceptions and slanderous lies repeated relentlessly until myth becomes truth.

As a businessman who has had a long-standing relationship with Walmart corporation, it offends me greatly the level of hate and resentment lobbed their way by absolute idiots.

 

[Roadrunner]

Just initiated a 401K rollover for a very sweet couple, both aged 63. They both spent the last 17 or so years working at Wal Mart. Not in corporate, but in regular ol' stores. Stocking shelves, receiving, some management, you name it.

They said "we were just careful with our money, we never had to buy the newest stuff, we lived within our means and stayed humble with our money". That's their big secret.

Totals of their 401K's:
Husband: $287,729.57
Wife: $211,898.10

Separate Roth IRA's at Edward Jones:
Husband: $42,114.52
Wife: $43,001.58

Total retirement portfolio: $584,743.77

After our meeting today, they left for a week-long camping and fishing trip with friends, celebrating the start of their comfy retirement. Just bought a cool new red Honda four-wheel-type thing for the trip. They like driving through streams.

So long Wal Mart, hello striped bass.

.

seems like a lot of money but at todays interest rates how do you live on it?

Well.... huh? What does interest rate have to do with it?

The money isn't in a CD I would assume. It's more likely at Edward Jones, earning dividends on a mutual fund.

My mutual fund at American Funds, earned 12% year over year. It's called "wise investment".

So lets assume conservatively, that they earn 8% on their investments.

8% of $585K is roughly $46K a year. Can you live off $46,000 a year? Yeah, I think so. I sure could.

I have everything I want, and live off $30,000 a year.

No debt, own one house, and just made an offer on half of another one with my GF.

It is all about living within your means, and not setting expectations higher than what you can meet.

You are buying a house with your girlfriend? What happens when she moves her new boyfriend in your house? You know without being married, she has just as much right to it, as you do, and she can do exactly that, and there is nothing you can do about it.

Sounds like you got worked over with some bitch's strap-on.

 

[SteadyMercury]

It's built to last forever, with the income increases I mentioned. The growth in the portfolio, over time, will replenish withdrawals.

When they're gone, it goes to the kids.

I have clients who have been taking 5%+ income for years and have more in their account than when they began.

We recently retired early in our mid 40s and are planning on living on withdrawal rate of about 4%, with a nice big vacation fund that could be used as additional buffer if needed if shit hits fan early in withdrawal phase.

We have a simple four way index fund portfolio, expense ratios very low.

 

[Roadrunner]

In the mid 80s, my company entered an agreement with Walmart to do vendor services. We were a young upstart company and Walmart was just taking off. The deal was very creative and gave us all a considerable amount of Walmart stock. I kept my shares through three splits and finally cashed them in after Sam Walton passed away. Value was over $500k.

The recent liberal War on Walmart is an offshoot of the Occutard Movement. These people are morons who have bought into the propaganda, the manipulated data, the outright misconceptions and slanderous lies repeated relentlessly until myth becomes truth.

As a businessman who has had a long-standing relationship with Walmart corporation, it offends me greatly the level of hate and resentment lobbed their way by absolute idiots.

Anti-walmart crowd never lived in a small town where all the stores, courts, lawyers, school board, funeral home, cops, firefighters and every other job was held by one or two families.

Walmart freed small town America from all that crap, as it brought the rural areas into the mainstream.

When their "revolution" starts, those occupy masks are going to make great targets.

 

[SteadyMercury]

What exactly was my advice? I said pick good mutual fund(S), with long track records.

If you have a fund that has 20 to 40 years, of decent growth, are you telling me that isn't a good pick?

I'd say it might be and it might not. There have been many a high flying fund that has crashed and burned, managers change, market conditions change, etc.

I'm not saying actively managed funds or bad, nor am I saying track record isn't important. Just saying 20 to 40 years of good growth doesn't in itself make it a good pick.

If I'm earning 13.67% on my money WITH sale charges,

and you are earning 6% with your index fund WITHOUT sales charges,

Which of us is doing better? Obviously I am.

Not so obviously.

You are using a flawed comparison if attempting to match returns over 30 years from one fund versus returns since inception on another, clearly they would be indicitive of fund performance over different time frames of overall market returns and economic conditions.

Your funds might be returning more, they might not... but comparing different lengths of time sure won't answer the question.

It just matters that you don't withdraw more than the ROI.

Actually there are quite a few withdrawal strategies that assume potentially eating into the principle for best chance of portfolio survival.

Assuming your goal isn't leaving money to heirs/whoever then starting with a couple million bucks and dying waving your lost dollar is a plan successfully executed.

 

[Mac1958]

How much did you make off of them?

Exactly none of your business.

What a weird question.

By the way, are you happy for them, that they were able to put that much away working at Wal Mart?

.

 

[Mac1958]

It's built to last forever, with the income increases I mentioned. The growth in the portfolio, over time, will replenish withdrawals.

When they're gone, it goes to the kids.

I have clients who have been taking 5%+ income for years and have more in their account than when they began.

We recently retired early in our mid 40s and are planning on living on withdrawal rate of about 4%, with a nice big vacation fund that could be used as additional buffer if needed if shit hits fan early in withdrawal phase.

We have a simple four way index fund portfolio, expense ratios very low.

If you can live on 4%, that's excellent, and it will mean less risk going forward.

Well done.

.

 

[Darkwind]

Just initiated a 401K rollover for a very sweet couple, both aged 63. They both spent the last 17 or so years working at Wal Mart. Not in corporate, but in regular ol' stores. Stocking shelves, receiving, some management, you name it.

They said "we were just careful with our money, we never had to buy the newest stuff, we lived within our means and stayed humble with our money". That's their big secret.

Totals of their 401K's:
Husband: $287,729.57
Wife: $211,898.10

Separate Roth IRA's at Edward Jones:
Husband: $42,114.52
Wife: $43,001.58

Total retirement portfolio: $584,743.77

After our meeting today, they left for a week-long camping and fishing trip with friends, celebrating the start of their comfy retirement. Just bought a cool new red Honda four-wheel-type thing for the trip. They like driving through streams.

So long Wal Mart, hello striped bass.

.

What is their lifestyle now? That amount is 23k and change per year if they plan to take 4%, meaning they plan on making the money last 20 years....

That's 449 per week.....They probably can count on an additional 2k a month in SS....Hmm...

23k from the accounts, another 24 from SS......47k a year or 900+ a week......Not bad.

 

[Mac1958]

That amount is 23k and change per year if they plan to take 4%, meaning they plan on making the money last 20 years....

That's 449 per week.....They probably can count on an additional 2k a month in SS....Hmm...

They already make about $30K in social security. They're taking 5% and we're investing so that the growth in the portfolio replenishes the withdrawals, plus inflation increases. This should last them the rest of their life pretty easily.

.

 

[Darkwind]

That amount is 23k and change per year if they plan to take 4%, meaning they plan on making the money last 20 years....

That's 449 per week.....They probably can count on an additional 2k a month in SS....Hmm...

They already make about $30K in social security. They're taking 5% and we're investing so that the growth in the portfolio replenishes the withdrawals, plus inflation increases. This should last them the rest of their life pretty easily.

.

Very nice.....a question if you don't mind doling out a freebie.....

I had always wondered about reinvesting the SS money.....do you run it in a high risk money maker to get the difference between taking the check or adding longevity to the retirement?

 

[Mac1958]

That amount is 23k and change per year if they plan to take 4%, meaning they plan on making the money last 20 years....

That's 449 per week.....They probably can count on an additional 2k a month in SS....Hmm...

They already make about $30K in social security. They're taking 5% and we're investing so that the growth in the portfolio replenishes the withdrawals, plus inflation increases. This should last them the rest of their life pretty easily.

.

Very nice.....a question if you don't mind doling out a freebie.....

I had always wondered about reinvesting the SS money.....do you run it in a high risk money maker to get the difference between taking the check or adding longevity to the retirement?

Not quite sure what you're saying. Do you mean starting income earlier and investing it to make up for the lower payments?

.

 

[Darkwind]

That amount is 23k and change per year if they plan to take 4%, meaning they plan on making the money last 20 years....

That's 449 per week.....They probably can count on an additional 2k a month in SS....Hmm...

They already make about $30K in social security. They're taking 5% and we're investing so that the growth in the portfolio replenishes the withdrawals, plus inflation increases. This should last them the rest of their life pretty easily.

.

Very nice.....a question if you don't mind doling out a freebie.....

I had always wondered about reinvesting the SS money.....do you run it in a high risk money maker to get the difference between taking the check or adding longevity to the retirement?

Not quite sure what you're saying. Do you mean starting income earlier and investing it to make up for the lower payments?

.

No, you say you are reinvesting their SS payments into their 401k or IRA investment vehicles, right? How are you able to use the growth of those funds to replace their withdrawls? Or are you saying that they're not even using the SS checks as a monthly income?