Don’t forget a safe swr are your goal posts ...that means the portfolio can initially produce that much ..but it does not mean you have to spend that much .
Kind of like being approved for a loan up to a certain amount.
The reality is each year is different..there are years we went over because of buying a car or dental and years we went under .
The important thing is to have slack in the plan .
Safe Withdrawal Rates
Moderator: Global Moderator
- mathjak107
- Executive Member
- Posts: 4662
- Joined: Fri Jun 19, 2015 2:54 am
- Location: bayside queens ny
- Contact:
- mathjak107
- Executive Member
- Posts: 4662
- Joined: Fri Jun 19, 2015 2:54 am
- Location: bayside queens ny
- Contact:
Re: Safe Withdrawal Rates
One thing I want to add is the saying live below your means really is a useless saying .
In life we have years we are over our income and years we are under .
The problem with the saying is just living below your income does not mean much at all .
What counts is the ratio of of discretionary to non discretionary spending .
That is what gives you slack in the plan .
Just being under your income and mostly everything is non discretionary is a bad budget .
We could have lived in one of our coops over looking Central Park for the same yearly budget we do now living in queens .
But half the stuff we like to do would have to go , we would have little slack in the plan and it would be a poor plan even though it is still a bit below income most years
In life we have years we are over our income and years we are under .
The problem with the saying is just living below your income does not mean much at all .
What counts is the ratio of of discretionary to non discretionary spending .
That is what gives you slack in the plan .
Just being under your income and mostly everything is non discretionary is a bad budget .
We could have lived in one of our coops over looking Central Park for the same yearly budget we do now living in queens .
But half the stuff we like to do would have to go , we would have little slack in the plan and it would be a poor plan even though it is still a bit below income most years
Re: Safe Withdrawal Rates
Mathjak, can you elaborate on this? Sounds like something worth looking into. I'd skipped the long term care plan offered by my employer which was most definitely not worth getting, but it didn't include anything about asset protection.mathjak107 wrote: ↑Sun Feb 07, 2021 12:47 pm We have a New York partnership plan for long term care ...it covers 3 years in a nursing facility or 6 years in home care .
But we didn’t buy it for the insurance..we bought it because all assets are protected 100% ...no income is restricted , there is no spend down or look back , and a special version of medicaid pays all bills once the insurance is up .
However, it seems I may have missed the boat - and that the plan may not be financially viable, so who knows if you're going to be able to collect from them when push comes to shove. From the NY website:
IMPORTANT: As of January 1, 2021, there are no current insurance companies offering new policy purchases of Partnership qualified products in New York State. This means that there are no new Partnership policies available for purchase at this time. This does not affect current, active insureds who are Partnership qualified.
- mathjak107
- Executive Member
- Posts: 4662
- Joined: Fri Jun 19, 2015 2:54 am
- Location: bayside queens ny
- Contact:
Re: Safe Withdrawal Rates
Wow ...glad we got ours ...I have to see why but obviously they were getting hammered with claims
I am not worried about our insurer they are well capitalized..in fact we had no increase in six years .
Only ny and Indiana I think it was offered 100% asset protection...covid must have created a lot of long term care users .
I know we looked and we had a 3 month elimination period so it wouldn’t have covered anything in the short term for us ..we only had help for two weeks.
There is no info anywhere on this yet except for a note on the nys partnership site ....
I guess if something is to much of a good deal then you know it will eventually end ...
The plan isn’t cheap at all ...we pay about. 8k a year for the two of us and nys gives us a 1600 dollar tax credit ....
But these plans are amazing for all the coverage they gave you once the insurance ran out
I am not worried about our insurer they are well capitalized..in fact we had no increase in six years .
Only ny and Indiana I think it was offered 100% asset protection...covid must have created a lot of long term care users .
I know we looked and we had a 3 month elimination period so it wouldn’t have covered anything in the short term for us ..we only had help for two weeks.
There is no info anywhere on this yet except for a note on the nys partnership site ....
I guess if something is to much of a good deal then you know it will eventually end ...
The plan isn’t cheap at all ...we pay about. 8k a year for the two of us and nys gives us a 1600 dollar tax credit ....
But these plans are amazing for all the coverage they gave you once the insurance ran out