truenorth418
Full time employment: Posting here.
I ER'ed 18 months ago at 47. I had tracked my spending for many years using Quicken. I set aside 2 years of spending plus an emergency reserve in a savings account and CDs. As I spend down one year's expenses, I replenish the savings accounts with dividends and capital gains from my taxable accounts. Essentially the money my portfolio is throwing off now is funding my 2015 spending. This bucket approach will give me some room to react in the case of a big market downturn so I can avoid cashing out stocks in a down market.
I only withdraw what I intend to spend in a given year. This has the added benefits of minimizing taxes and allowing me to keeping more $ in my investments so they can keep growing.
I only withdraw what I intend to spend in a given year. This has the added benefits of minimizing taxes and allowing me to keeping more $ in my investments so they can keep growing.