[Mod Edit]
I'm now 54, and was recently laid off from my mid-level tech management Silicon Valley job. My earnings topped out last year at 240k/yr. My SO (56) is semi-retired and earns about 15k/yr.
We have a modest portfolio due to a late start (mid-40's) with our investments. We have about 750K in taxable and non-taxable accounts. We do not own real estate. The plan was to get to at least 1mil in 2-3 years. Obviously, our plan has been thwarted.
My core question here is, can I use a 3% withdrawal rate (drawing down against my cash reserves earning between 1-2%) to supplement my UI until I find another job? My concern is preserving what we have so that we're not jeopardizing our capital (sorry, if I'm getting the terminology wrong).
Here's our monthly expenses, UI and using the 3% withdrawal rate:
Expenses: $4800
UI: $1800
3% W/D: $1875
SO's Inc: $1100
The numbers above doesn't tax taxes into consideration as UI in California is taxable.
Any thoughts or feedback is greatly appreciated. Let me know if you need additional information.
I forgot to add that I do get a severance - this will go into the short term cash reserves earning 1% at Goldman Sachs online account. I have plenty in our checking account to last for a few months without dipping into the other cash buckets.
I'm now 54, and was recently laid off from my mid-level tech management Silicon Valley job. My earnings topped out last year at 240k/yr. My SO (56) is semi-retired and earns about 15k/yr.
We have a modest portfolio due to a late start (mid-40's) with our investments. We have about 750K in taxable and non-taxable accounts. We do not own real estate. The plan was to get to at least 1mil in 2-3 years. Obviously, our plan has been thwarted.
My core question here is, can I use a 3% withdrawal rate (drawing down against my cash reserves earning between 1-2%) to supplement my UI until I find another job? My concern is preserving what we have so that we're not jeopardizing our capital (sorry, if I'm getting the terminology wrong).
Here's our monthly expenses, UI and using the 3% withdrawal rate:
Expenses: $4800
UI: $1800
3% W/D: $1875
SO's Inc: $1100
The numbers above doesn't tax taxes into consideration as UI in California is taxable.
Any thoughts or feedback is greatly appreciated. Let me know if you need additional information.
I forgot to add that I do get a severance - this will go into the short term cash reserves earning 1% at Goldman Sachs online account. I have plenty in our checking account to last for a few months without dipping into the other cash buckets.
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