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View Poll Results: Retirees only: what's your withdrawal scheme?
Classic: fixed percentage of initial stash + annual inflation adjustment 14 11.11%
95% rule 4 3.17%
Bernicke 2 1.59%
Guyton 3 2.38%
*****ian P/E10 0 0%
Gummy sensible withdrawal 6 4.76%
Whatever interest + dividends I get 9 7.14%
Capped at roughly 4% of current stash 20 15.87%
God takes care of fools like me 5 3.97%
Other (explain) 12 9.52%
I'm not retired, but I love polls! 51 40.48%
Voters: 126. You may not vote on this poll

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Poll: What's your withdrawal scheme?
Old 01-18-2007, 12:47 PM   #1
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Poll: What's your withdrawal scheme?

OK, I admit that I haven't been keeping track of all the different schemes, so tell me if I missed the latest algorithm.
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Re: Poll: What's your withdrawal scheme?
Old 01-18-2007, 01:15 PM   #2
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Re: Poll: What's your withdrawal scheme?

I'll start by saying we're not in the withdrawal phase yet, as Momma is still working and adding to her 401K ( negative 0.3 WR at present )

When she does pack it in I think we'll do something along the following lines:

- use a 3% fixed plus 1% of portfolio withdrawal scheme

- sell equities from our taxable accounts at 6 month intervals to do that (in the early going)

- and in December, selling the additional equities required to cover the taxes resulting from conversions of Trad IRA --> Roth IRA's to use the top of the 15% tax bracket.

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Re: Poll: What's your withdrawal scheme?
Old 01-18-2007, 02:14 PM   #3
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Re: Poll: What's your withdrawal scheme?

Don't have one yet, covering all needs with small pension.
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Re: Poll: What's your withdrawal scheme?
Old 01-18-2007, 02:35 PM   #4
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Re: Poll: What's your withdrawal scheme?

rents = dividends (that's what I checked)
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Re: Poll: What's your withdrawal scheme?
Old 01-18-2007, 03:05 PM   #5
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Re: Poll: What's your withdrawal scheme?

I'm not retired yet, but my calculations are for a variable withdrawal rate. It will be higher than 4% for the first 5 years, then my pension will kick in, so it goes below 4% for a while, then 8 years later SS kicks in so it will go even lower.
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Re: Poll: What's your withdrawal scheme?
Old 01-18-2007, 04:50 PM   #6
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Re: Poll: What's your withdrawal scheme?

So far I'm doing whatever I want and spending well below 4%. I still check my spending/portfolio ratio every year just to be sure. But basically, the gods take care of fools like me.
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Re: Poll: What's your withdrawal scheme?
Old 01-18-2007, 06:07 PM   #7
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Re: Poll: What's your withdrawal scheme?

5% of the December 31 balance.

The 2007 amount is now in my cash account to be drawn out in 12 equal payments.

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Re: Poll: What's your withdrawal scheme?
Old 01-18-2007, 06:31 PM   #8
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Re: Poll: What's your withdrawal scheme?

Quote:
Originally Posted by Zipper
5% of the December 31 balance.

Did that last year. This year took about 1/3 of 5% and put in money market. Will do the rest around tax time probably.

heh heh heh - does that make me a dirty market timer
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Re: Poll: What's your withdrawal scheme?
Old 01-18-2007, 06:52 PM   #9
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Re: Poll: What's your withdrawal scheme?

Good point unclemick.

Taxes on the 5% are deducted at source. The net deposited in the cash account is divvied up in 12 installments.

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Re: Poll: What's your withdrawal scheme?
Old 01-18-2007, 06:55 PM   #10
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Re: Poll: What's your withdrawal scheme?

I suspect that the distribution phase of my plan will be much more difficult to execute than the accumulation phase of my plan.

I have found it quite easy to put aside money in many different ways over the years and I have been very successful in getting that money to some investment that has made it grow. I know how to do it and it is not that difficult. But that part about spending that build-up is very troublesome for me.

My Plan calls for your basic 4%+SWR, but I know deep down that I will probably not follow that when it comes to the more difficult task of making my stash stretch out for an unknown number of years.

In other words, I understand that the "rule of 72" works both ways.
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Re: Poll: What's your withdrawal scheme?
Old 01-18-2007, 07:17 PM   #11
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Re: Poll: What's your withdrawal scheme?

The poll failed me. I am planning to split my withdrawls with minimum living costs coming from the 4% SWR plus pensions and SS. The assets beyond the minimum I was looking at doing Bernicke since it would be mostly travel and extras. When it was all said and done, I'd still have a little cushion above the bare bones withdrawls. I'm not quite there but it's close.

I don't see a reason to have a large "SWR" when the data shows we won't spend that amount of money as we age.
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Re: Poll: What's your withdrawal scheme?
Old 01-18-2007, 07:18 PM   #12
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Re: Poll: What's your withdrawal scheme?

interest/divs, as I've pegged them, more than cover my needs, so for now that's what I'm using. future years, i'll take out of cap. app. if need to.
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Re: Poll: What's your withdrawal scheme?
Old 01-18-2007, 08:14 PM   #13
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Re: Poll: What's your withdrawal scheme?

Have a DB pension, meets most of our needs. Dip into stash (incl div and int) only as needed for "special" items such as newer (never new) vehicle, house remodel. Stash withdrawals so far have been worst case 2% of stash. Of course, once boys get into teenage years and college, that's when stash will get attacked more aggresively.

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Re: Poll: What's your withdrawal scheme?
Old 01-18-2007, 10:06 PM   #14
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Re: Poll: What's your withdrawal scheme?

Quote:
Originally Posted by sgeeeee
So far I'm doing whatever I want and spending well below 4%. I still check my spending/portfolio ratio every year just to be sure. But basically, the gods take care of fools like me.
The job doesnt hurt either...still working arent you? How do you figure things like withdrawal rates when you're offsetting costs with income?
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Re: Poll: What's your withdrawal scheme?
Old 01-18-2007, 11:58 PM   #15
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Re: Poll: What's your withdrawal scheme?

Quote:
Originally Posted by Cute Fuzzy Bunny
The job doesnt hurt either...still working arent you? . . .
No.
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Re: Poll: What's your withdrawal scheme?
Old 01-19-2007, 07:32 AM   #16
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Re: Poll: What's your withdrawal scheme?

Funny this poll comes up right before my first withdrawal. I have not had to touch our portfolio for two years into retirement, but now it's time. Maybe there should be a category for "gut-feel approach". I'm just taking out what I think I need for now, well below the 4% SWR. Lots of room for flexibility.

I voted "other".
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Re: Poll: What's your withdrawal scheme?
Old 01-19-2007, 07:54 AM   #17
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Re: Poll: What's your withdrawal scheme?

I checked 'other'. I'll explain...

After tracking expenses for 3+ years immediately before retiring, I had a good idea of what they would be once I hung it up.

After playing with every withdrawal calculator I could get my hands on, I developed confidence in the logic behind FIRECalc.

After running FIRECalc six ways from Sunday, I have a good idea for what my annual withdrawal rate should be...or more accurately, should not exceed.

Happily, after adjusting for my personal annual inflation rate of 3.141592653589793238462643383279502884197169399375 105820974944592% , our annual expenses have been below what FIRECalc says we can safely withdraw.

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Re: Poll: What's your withdrawal scheme?
Old 01-19-2007, 08:01 AM   #18
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Re: Poll: What's your withdrawal scheme?

Quote:
Happily, after adjusting for my personal annual inflation rate of 3.141592653589793238462643383279502884197169399375 105820974944592% , our annual expenses have been below what FIRECalc says we can safely withdraw.
Easy as pi(e)
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Re: Poll: What's your withdrawal scheme?
Old 01-19-2007, 08:01 AM   #19
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Re: Poll: What's your withdrawal scheme?

Sort of like having your Pi and eating it too. Good strategy REWahoo!
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Re: Poll: What's your withdrawal scheme?
Old 01-19-2007, 08:20 AM   #20
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Re: Poll: What's your withdrawal scheme?

Quote:
Originally Posted by REWahoo!
Happily, after adjusting for my personal annual inflation rate of 3.141592653589793238462643383279502884197169399375 105820974944592% , our annual expenses have been below what FIRECalc says we can safely withdraw.
But I will challenge you with the the fact that you are probably underwithdrawing from your stash.  Your discretionary spending will fall as you age.  What you now think of as "essential" will soon become "discretionary."

Live a little REW, put some ice cream on your Pi.
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