4. Build yourself a barebones budget-- the absolute minimum you're willing to tolerate before becoming a Wal-Mart greeter or a doorman at an apartment complex when you're 82 years old. Make that your 100% success threshold,
subtract Soc Sec and/or any pension income and then annuitize the remaining amount from your portfolio
[example: if you need $40K/yr and you get $20K/yr from Soc Sec, you might consider a SPIA to provide $20K/yr. You would have to allow for COLA/non-COLA also]. Treat the rest of your portfolio as money to be spent when there is not a bear market.
7. Use the 4% rule to start your ER, and keep an eye on your portfolio vs annuity costs. If your portfolio declines to the absolute minimum standard of living that you can tolerate then start buying annuities. It's a study discussed in this thread:
That link doesn't work anymore, here's one that still does http://www.schulmerichandassoc.com/Modern_Portfolio_Decumulation.pdf.
Like a few others, I've linked to it here several times over the years (and printed it so I never lose it) - it's the best Plan B annuitization article I've ever read.
I have been planning to start a 'Plan B annuitization' thread here for the past week.
