Yesterday I was surprised by good news that will affect my life if I let it.
I wrote that 2 days ago. I won’t let it – I’ll use it.
First some back story. I retired in November 2008 into the maw of the global economic shit storm. For the last 5 1/2 years I’ve lived off my non-ira account, spending 55% of its original balance. The IRA doubled in value. In that time, believe it or not, I haven’t looked at my annual Social Security statement* or recalculated my retirement income projections.
That changed 2 days ago. An early retirement forum** post on one of the projection tools I used in 2008 motivated me to run it on my current numbers, including Social Security.
Once the world resumed normal speed and I was able to form a thought more complex than ‘What!?’, I double checked everything and reran the scenario. Same result. Letting it age overnight was the first and only next step that came to mind.
Yesterday morning I double checked, reran and got the same results. Then I used the updated versions of 2 tools I’d also relied on in 2008. Bottom line is with my most conservative assumptions, all 3 tools project a safe (using my definition of ‘safe’) monthly income just over double my average monthly spending over the last 30 months.
I’m gonna need a more expensive country.
* As far back as I can remember, I’d excluded Social Security from my retirement calculations. At first that was because I’d learned never to underestimate how badly a government can screw things up or intentionally screw the citizens. Later I transitioned to treating the excluded SS as a safety net.
** http://www.early-retirement.org/forums/ Good luck guessing my user name.