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For those of you retired and living off of retirement savings, how often do you pull…
Posted on 5/24/25 at 11:12 am
Posted on 5/24/25 at 11:12 am
..money from investment portfolio and hold as cash for your upcoming expenses? A year at a time? 6 months? A month? No cash bucket at all?
I’m still a few years from retiring and hopefully a lot of years from pulling from retirement savings, but would like to know some strategies being employed by real people. Thanks!
I’m still a few years from retiring and hopefully a lot of years from pulling from retirement savings, but would like to know some strategies being employed by real people. Thanks!
This post was edited on 5/24/25 at 11:14 am
13
Posted on 5/24/25 at 11:22 am to auwaterfowler
Wouldn’t you just live off the interest and leave the principle alone?
Posted on 5/24/25 at 11:25 am to Breesus
quote:
Wouldn’t you just live off the interest and leave the principle alone?
You still draw down the principle unless you’re wanting to leave a ridiculous nest egg to your children.
Posted on 5/24/25 at 11:25 am to Breesus
You might want to delete your post. Where do you think the interest goes that any particular retirement account earns? It stays within each of the investments in the account. If you have $100k of VOO in your account and it gains 10%, you now have $110k worth of VOO.
This post was edited on 5/24/25 at 11:28 am
Posted on 5/24/25 at 11:29 am to auwaterfowler
We pull 100k per year and gift the kids the maximum allowed with out them having a tax issue.
Posted on 5/24/25 at 11:31 am to auwaterfowler
I'm not quite there yet but my thought is monthly. That allows the rest to continue to grow (fingers crossed).
Posted on 5/24/25 at 11:33 am to auwaterfowler
quote:
You might want to delete your post
Ok. I’ll think about. I really hope I didn’t hurt my reputation.
quote:
Where do you think the interest goes that any particular retirement account earns
Into a separate account just for interest of course
Posted on 5/24/25 at 11:44 am to auwaterfowler
Not retired but I would think you set a min/max for your working account and just keep the balance between those lines?
Posted on 5/24/25 at 1:26 pm to auwaterfowler
Well, there are going to be an endless supply of ideas but here is mine for what its worth...
Bucket 1= cash (no risk investments..ie: laddered CD's, Money Markets accounts, etc). This bucket should have roughly 3 to 5 yrs worth of income.
Bucket 2= blended low risk funds and/or annuities that mature in 3-7 yr.. Some risk but not full market risk.
Bucket 3= full market risk.. this is you 7+ yr Bucket. The market swings can be tolerated and you shouldn't have to pull from this Bucket until the market is in an up swing.
You back fill Bucket 1 with Bucket 2... and back fill Bucket 2 with Bucket 3. This concept should prevent you from ever having to pull from any Bucket if that Bucket is in a negative return.
You keep all your eggs in a pure market risk Bucket then u risk pulling from that when u are in a down cycle. This can sink your retirement.
Once again, just my humble opinion.
Bucket 1= cash (no risk investments..ie: laddered CD's, Money Markets accounts, etc). This bucket should have roughly 3 to 5 yrs worth of income.
Bucket 2= blended low risk funds and/or annuities that mature in 3-7 yr.. Some risk but not full market risk.
Bucket 3= full market risk.. this is you 7+ yr Bucket. The market swings can be tolerated and you shouldn't have to pull from this Bucket until the market is in an up swing.
You back fill Bucket 1 with Bucket 2... and back fill Bucket 2 with Bucket 3. This concept should prevent you from ever having to pull from any Bucket if that Bucket is in a negative return.
You keep all your eggs in a pure market risk Bucket then u risk pulling from that when u are in a down cycle. This can sink your retirement.
Once again, just my humble opinion.
Posted on 5/24/25 at 1:56 pm to auwaterfowler
quote:
You might want to delete your post. Where do you think the interest goes that any particular retirement account earns? It stays within each of the investments in the account. If you have $100k of VOO in your account and it gains 10%, you now have $110k worth of VOO.
Posted on 5/24/25 at 2:16 pm to auwaterfowler
Do not reinvest my dividends and interest from portfolio.. gets dumped into a high yield account during the year.. empty it first week in January ..
Do not touch principle.. it increases so I have inflation built in and leave a few bucks to my kids.
I have ss.. annuity.. rentals to diversify the revenue stream and they kick out checks monthly.
Do not touch principle.. it increases so I have inflation built in and leave a few bucks to my kids.
I have ss.. annuity.. rentals to diversify the revenue stream and they kick out checks monthly.
Posted on 5/24/25 at 2:20 pm to auwaterfowler
quote:
It stays within each of the investments in the account.
you can turn the DRIP off, dividends in my wife's Roth account are deposited in a savings account within the Roth
Posted on 5/24/25 at 2:24 pm to auwaterfowler
quote:
You might want to delete your post.
Sorry Breesus, I sounded like a complete dick, and was not entirely correct. My apologies.
This post was edited on 5/24/25 at 2:25 pm
Posted on 5/24/25 at 3:03 pm to auwaterfowler
You might want to delete your post
Posted on 5/24/25 at 3:12 pm to Breesus
Nah, I’ll take my lumps. I learn best from my own dumbassery.
Posted on 5/24/25 at 10:33 pm to auwaterfowler
Semi-retired and haven't moved in that direction and hope no to do for a few more years. Too young to sit - is fun investing years into others and make a bit of pocket change [save most of that, too]
Posted on 5/24/25 at 11:14 pm to sstig
quote:
We pull 100k per year and gift the kids the maximum allowed with out them having a tax issue.
They wouldnt owe tax, you might. If you exceed the annual limit just have to declare it on an IRS.form and it counts against your lifetime estate tax exemption. Currently thats nearly $28 million per married couple.
Posted on 5/25/25 at 9:46 am to auwaterfowler
I withdraw from one of my IRA's monthly. I hold enough cash in a money market fund in that IRA to meet those withdrawals for two years. At the end of the year, my stock mutual funds pay distributions, I use them to top off the cash. I have cash in my other IRA's, but no bonds at the moment. A large part of my assets is still in an ESOP which will pay out in cash over the next three years, I will evaluate the bond/equity allocation as that ESOP pays out.
The CAP gains and div income from my mutual funds is typically enough cash to pay for one year + of my spending in just that one IRA.
The CAP gains and div income from my mutual funds is typically enough cash to pay for one year + of my spending in just that one IRA.
Posted on 5/25/25 at 1:55 pm to auwaterfowler
I withdraw when I need it. Roughly once a month or so. Dividends from stock funds in the taxable brokerage and income from the MM funds keeps me pretty whole. Depending on expenses I may have to sell some MM to stay afloat. 5 Years into retirement, I'm doing OK.
I'm too young to pull from retirement directly. Getting close though.
I'm too young to pull from retirement directly. Getting close though.
This post was edited on 5/25/25 at 1:58 pm
Posted on 5/25/25 at 2:14 pm to auwaterfowler
Only if you reinvest dividends. Otherwise, it’s cash.
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