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Ret. Income Order of Spending/Withdrawal
Old 11-08-2015, 07:47 PM   #1
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Ret. Income Order of Spending/Withdrawal

I am currently 60 and plan to retire within the next 1-2 years. When I do retire, I am at a loss as to what order I should begin withdrawing funds from my various accounts. Hopefully, most of the withdrawals should be interest/gains and little principal, dependent on how the market behaves but I'm sure there will be years when the principal will need to be tapped.

Currently, my assets are split up as shown below. Most of the 22% cash will be put into a yet to be determined investment in the very near future. I will need about 25% of my total funds in 1-2 years to finance my retirement home in another state which should begin construction in late 2016 or 2017.

Current 401k - 2%
Rollover from previous 401k - 28%
Regular Investment acct - 14%
Roth IRA - 3%
Cash - 22%
CD - 15%
Precious Metals - 16%

Can somebody please direct me to a resource which discusses strategies for post retirement withdrawals/spending from the various investments which are available. While I've done OK over the years investing the money I am clueless on the best course of action when I do retire. I can see this is going to get pretty confusing trying to figure out the best strategy.

Thanks!
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Old 11-08-2015, 07:52 PM   #2
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Here's a very good calculator that should help answer your questions: http://www.i-orp.com/coverORP.html
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Old 11-08-2015, 08:25 PM   #3
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Quote:
Originally Posted by REWahoo View Post
Here's a very good calculator that should help answer your questions: http://www.i-orp.com/coverORP.html
Second that! ORP is my favorite for looking at these kinds of questions including some RE holdings wherein I vary the sell year to see the effect.

heh heh heh - within in the last four years - New Wife, farm, second house, pension, annuity, etc. Life is good but more complicated.
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Old 11-09-2015, 07:44 AM   #4
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New wife alone is enough to complicate things. Other stuff is relatively minor.
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Old 11-09-2015, 01:22 PM   #5
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You asked for it--reading these threads should keep you busy for a while.

https://www.google.com/search?sitese...thdrawal+order
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Old 11-09-2015, 02:08 PM   #6
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I would map it out for the next 30 years keeping withdrawals about the same for each year. Then do the same thing for taxes so the expected taxes are also equal across years. Then continually adjust this going forward as things change.
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Old 11-09-2015, 05:29 PM   #7
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Thanks for the links everyone. Luckily, I have plenty of time to figure this out before I actually will be retiring.
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Old 11-09-2015, 05:43 PM   #8
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Check out page 17 of this, assuming you're a total return investor rather than an income investor. It's the simplest breakdown of general spending strategy I've seen for total return.

https://personal.vanguard.com/pdf/s352.pdf
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