Cadmaven

Monday, November 12, 2007

The difference between finite and infinite

The concept of the difference between finite and infinite is not strictly mathematical. What I have come to realize is that when I stopped working, and was placed into forced retirement, I had to do some math to figure out how I could live on my meager savings which were in various forms of IRAs and retirement packages. It boiled down to making a comparison between what I was earning annually and how many years I could live on my retirement savings based on the life style I had grown accustomed to. Well, it turned out, that wasn’t a whole lot of years. Truth be told, I really never planned to retire so that over the years that I was working I lived for the day and didn’t do a whole lot of saving for tomorrow.

That part of the story is what happens when you divide what you have by the number infinity

When that number becomes finite, the whole story changes and now instead .of calculating what I have to spend per year for an unknown number of years I can now try to figure out how I can spend all that money in the time I have left, and enjoy doing it.

The IRS has a hand in this as well since they have not been able to tax me on the IRA type funds, they wrote a law that says I’m required to take out a certain percentage of my IRA funds and annually have that as income that they in turn can tax. So even if I don’t ask for any money the money manager has to send me a check every year.

This new spending plan is going to be fun to deal with so I hope I play my cards right and cash out before I have to cash in.

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