At the risk of TMI, here goes
Before retirement, I adopted the Sequence of Risk financial plan and built a large cash bucket (about 3 years of spending). This is my savings bucket and the money is parked in high interest savings accounts like Amex savings.
I also have a Checking bucket that is used to pay all expenses.
I make a monthly transfer from the Savings bucket to the checking bucket. That part is easy.
Refilling the Savings bucket takes a little bit of planning.
Firstly, I have to limit my income to stay under the ACA fiscal cliff of $64K. I get about 1/3 from capital gains, 1/3 from dividends and interest and 1/3 from IRA transfers.
This income is less than my spending, so my savings bucket is generally in decline.
The dividend and interest amounts from my taxable accounts flow into checking and basically reduce the amount transferred from the savings account.
Once a year, I plan a sale of some investment, in my taxable accounts, to generate cash and recognize some income. No real plan, just whenever. If I want to generate $20K of capital gain, then I sell the necessary amount of equity. I transfer the entire proceeds from the sale into the savings buffer. Naturally, I also keep an eye on my AA as I plan this sale. The trickiest part is to balance the income recognized with the amount of cash needed. If I need a lot of cash, then I sell investments with the least amount of gain.
Lastly is the IRA/401K transfers. I usually take 1/2 of planned distribution on May 1.
The hardest part is the December transfer. I have to accurately estimate my income for the year and transfer the amount to hit my $62K income target. I have to work though all the dividend estimates and make the final transfer around Dec 26th.
I start filing my taxes in November to figure out my numbers.
I am a quicken user and just starting learning how to use the projected balance feature. I have modeled various transfers into and out of my savings bucket up to 1/1/2024. This way, I can keep this bucket containing around 1 year's living expenses at the minimum.