BogleHeads' Guide to Retirement Planning

[Helen]

LOL-

To clarify my question regarding "the gap", it's how to provide adequate income during the time gap btwn ER and collecting pension/SS. What techniques have others used successfully to do this, while minimizing the tax hit, maintaining flexibility, etc.

I think you've understood my question, based on your replies above. But, I'd like to hear more from you and others on this.

Thanks.

Well, this is a bad time to sell real estate but that is my plan. That should give me the 4 year cash I need to fund retirement until pensions kick in. I'll still be withdrawing from my portfolio until SS starts at 66.5, but I'll have bond money to pull from if the stock market tanks.

It is hard to sell the real estate in this market, but I think it is going to be a long time before substantial appreciation occurs. The stock market OTOH, can turn around quickly.

 

[Huston55]

My version would probably be more like this:

Other ideas:

[-]Sell house, live in van down by the river.[/-]
Sell house, move in with girlfriend
DW runs over me with the van and sends me down the river

But, I did say I was looking for additional ideas so, thanks for that.

 

[yakers]

Other ideas:

Sell house, live in van down by the river.
Sell house, move in with girlfriend

A looks pretty cheap.
B could get 'really' expensive

 

[Nords]

What techniques have others used successfully to do this, while minimizing the tax hit, maintaining flexibility, etc.

I retired with a military pension at age 41, and the plan was to spend down our investments for the next 20 years until spouse's military pension kicked in.

Along the way her parents unexpectedly moved out of our rental property, which considerably improved its cashflow.

But otherwise it's been a couple years' expenses in cash, refueled by regular doses of long-term capital gains.

 

[obgyn65]

Hello rescueme - you did not offend me and your advice is well taken. You are correct, for some reason finances are not my top priority - this is why I keep coming back to this website as I have been learning a lot from everyone, including you. Take care.

Just my simple POV/opinion.

(Sorry if I offended you)...

 

[RetireBy90]

LOL-

To clarify my question regarding "the gap", it's how to provide adequate income during the time gap btwn ER and collecting pension/SS. What techniques have others used successfully to do this, while minimizing the tax hit, maintaining flexibility, etc.

I think you've understood my question, based on your replies above. But, I'd like to hear more from you and others on this.

Thanks.

My plan (3 yrs into plan) is each year buy a 5 yr CD that will fund 1/2 of my needs for a year for 7 years. I plan to retire at 58. The CD rate at Penfed is 2.25, so not great considering inflation but lots better than my bank. I should have 1/2 of my NEEDS covered till I can start SS. The other 1/2 would come from my IRA/401K and allow a low draw for the first few years.

Now that little evil voice says keep with this but draw the full expenses from the IRA and use the CD each year to have a great vacation! Hrmmm, I'll have to think about that

 

[WestLake]

Rhetorical: how can you RE if you can't fund "the gap"?

I have paid off rentals and dividends coming from a taxable stock account and am also building up cash for my projected retirement of late age 55 in 2014.

 

[Huston55]

Rhetorical: how can you RE if you can't fund "the gap"?

I have paid off rentals and dividends coming from a taxable stock account and am also building up cash for my projected retirement of late age 55 in 2014.

Well, you can't. But, my question (which I didn't ask very clearly) was more about gap filling techniques than having/not having the $$$. I have, or am very close to having, the $$$ to fill the gap and wanted to compare what I've read to what others are actually doing to address this segment of ER; and, hopefully, pick up some useful info in the process. Here's what you all have said you're doing:

1. 72t withdrawals from IRAs, SEPPs.
2. Begin 401k withdrawals at 55, if gone from that employer.
3. TIP/CD ladders and other cash approaches.
4. Taxable account withdrawals.
5. Use of ORP, etc. to optimize (minimize taxes) withdrawal/conversion strategy.
6. Annuities.
7. Sell real estate, including current residence.
8. Rental income.
9. Dividend income.

Thanks much for the posts thus far.

 

[HFWR]

...although ... some sexual inuendos turn me off a bit sometimes...

We can only discuss paying off your mortgage, or not, a few thousand times...

And here I thought you were really "H*cus" ....

There's only 24 hours in a day, and I don't have the carpal endurance!

Not even [-]th[/-] CFB was as "prolific" as *****. JG maybe, and equally as asinine...

 

[W2R]

We can only discuss paying off your mortgage, or not, a few thousand times...

Did I mention that I really like not having mortgage payments due every month in retirement? Oh, uh, errrr.....