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Sources of retirement income
Old 06-01-2009, 02:22 PM   #1
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Sources of retirement income

In another thread focusing on the financial tribulations of my MIL, many alternative sources of retirement income were highlighted which made me curious...

So, if you are retired or semi-retired, what were your sources of income in 2008? If you are a young dreamer like me, what sources of income do you envision having in retirement?

Equity dividends? Bond dividends? Interests from savings account, MMFs, CDs? SS? Pension? Rents from investment properties or roommates? Reverse mortgage? Annuity? Part-time work? Asset sale? Capital gains? Hobby? Book royalties? etc...

A typical post could be formatted as follows:
SS 40% of total income
Pension (COLA) 20%
Dividends (stocks) 10%
Dividends (bonds) 10%
Annuity 10%
Tips from gig at the Go-Go lounge 10%

Anyways, for me it will likely be:
Annuity (COLA) 33%
Dividends (stocks and bonds) 67%

Now it's your turn...
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Old 06-01-2009, 02:34 PM   #2
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Retired.

dividends (stocks) 80%
capital gains (stocks) 20%
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Old 06-01-2009, 02:47 PM   #3
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2009 Income
Pension (Non-COLA) 36%
Dividends & Interest 64%


2010 Income (planned 6.5% increase)
SS 37% of total income
Pension (Non-COLA) 26%
Dividends & Interest 37%
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Old 06-01-2009, 02:53 PM   #4
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That would likely be complicated because I'd have to break it into 3 or 4 periods when I retire, when my wife retires and when we start taking pension and SS benefits (assuming we're not means-tested out of them).

I'm more and more inclined to arrange my finances in a way that will keep income moderate for life. And if that means using 72(t) to keep future IRA/401K withdrawals from triggering high tax brackets and entitlement means testing before we become eligible for them, so be it. Our house is paid off and we can live cheaply.
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Old 06-01-2009, 02:56 PM   #5
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Currently using a bucket of money--in a few years are planning on

25% SS,
25% pension,
50% earnings from IRA invested in conservative Vanguard funds.
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Old 06-01-2009, 02:58 PM   #6
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Retired in 1988
Age=73
Wife=71
36% Pension (defined benefit plan)
27% My Social Security
13% DW Social Security
24% CD's (calculated at current 4.5% yield)

All percentages were calculated at net. I took minimum requred distributions the last two years.
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Old 06-01-2009, 03:04 PM   #7
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Equity dividends? Bond dividends? Interests from savings account, MMFs, CDs? SS? Pension? Rents from investment properties or roommates? Reverse mortgage? Annuity? Part-time work? Asset sale? Capital gains? Hobby? Book royalties? etc...

CSRS survivor pension, COLA, 60% income.
Fixed Annuity, 40% income.
Roommate - dh2b w*rking, pooling our incomes and doing just fine.

Future - my FERS pension, diet COLA, projected to be 15% income.
Future - restart contributions at age 55, then tap existing Roth IRA sometime after age 59.5
Future - Muni bond + stock MF cap gains and dividends (all reinvested now).
Existing EE and I bonds - minimum maturity within 10 years. TBD to continue earning interest to full maturity or cash in and convert to Wellesley or munis.
Future - TE money market funds (I just started one up).
Future - SS actual benefit TBD with 14 year zero earned income between FIRE and age 62.
Patent royalties - worth a cup of coffee somewhere.
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Old 06-01-2009, 03:16 PM   #8
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SS survivor benefits 20%
Pension 40%
Capital Gains & Dividends 40%
Ebay sales - mad money
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Old 06-01-2009, 03:17 PM   #9
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2008 was my last year working so there was a couple months work, a buyout bonus and sold back sick leave, hard to calculate, no withdrawals from IRA . 2009 is our first year in 'full' retirement. Looks like 83% DW & my COLAd pensions, 15% from a stock I sold in 2008 and 2% DWs occasional work. 2010 should be about 83% pensions, 14% from IRA withdrawals and 3% from DWs occasional work.
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Old 06-01-2009, 03:27 PM   #10
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2008....DH's salary

2009....Pension (non-cola'd) 25%
Cash and interest 75% until 2013

2013....Pension (non-cola'd) 22%
Cash, interest, dividends 15%
IRA 63% until 2016

2016....Pension (non-cola'd) 20%
SS 25%
IRAs 55% unitl 2020

2020....Pension (non-cola'd) 15%
SS (both) 35%
IRAs 50%

That's the plan....eh...more or less.
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Old 06-01-2009, 03:53 PM   #11
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Quote:
Originally Posted by freebird5825 View Post
CSRS survivor pension, COLA, 60% income.
Forgive my ignorance, but don't you lose this when dh2b becomes dh? I thought most survivor benefits were lost in pension plans when you remarry.
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Old 06-01-2009, 04:13 PM   #12
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Quote:
Originally Posted by ziggy29 View Post
Forgive my ignorance, but don't you lose this when dh2b becomes dh? I thought most survivor benefits were lost in pension plans when you remarry.
No ignorance on your part...this is a federal CSRS survivor pension.
As long as I don't remarry before age 55, I'm good to go. I am 100% positive of that one.
The green light happens in 2013. It's gonna be a hell of a wedding. Poor guy will have waited 8 years total for me.
He claims I'm worth it.

from http://www.opm.gov/retire/faq/post/faq4.asp#9

When do my benefits end?
Survivor annuities are payable through the end of the month prior to the date of the event which caused the loss of eligibility. For example, if the remarriage or other event occurred in April, benefits would end on March 31.

Survivor annuities payable to widows, widowers, and former spouses end if the survivor remarries before age 55 and was not married for at least 30 years to the deceased employee or annuitant. Widows, widowers, and former spouses who remarry after they reach age 55 continue to be eligible for survivor annuity benefits. The survivor annuity for a former spouse who is entitled because of a court order, ends if the terms of the court order are satisfied. Insurable interest annuities are payable for the life of the survivor.

If an annuity to a surviving spouse ends for a remarriage, it can be restored if the remarriage ends. Before the benefit can be restored, the survivor must pay back any lump sum payment of retirement contributions, if applicable. Former spouse benefits that end because of a remarriage can never be restored. If you want your annuity restored, write to us and include a copy of the decree of divorce, annulment, or death certificate.
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Old 06-01-2009, 07:04 PM   #13
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Retired-Age 48, 2008 actual numbers:

48% Tax-free interest income
32% Taxable dividend & interest income
15% Taxable option premium income
6% Salary from p-t job (also investor in company-didn't intend to "work")

"Net Income" 25% of total. In other words, I spent 75% of the income.
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Old 06-01-2009, 07:28 PM   #14
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I will be retiring in November at age 61, and plan to claim my Social Security at age 66.

Social Security (G Fund principal* before SS starts)24%
Federal pension ("diet COLA")10%
TSP equal monthly payments (self-COLA'd)10%
Bond fund dividends12%
Wellesley dividends30%
Stock fund dividends14%

*My TSP (401K) is invested in the G Fund, which is a federal bond fund guaranteed to never lose principal. I plan to use this investment to compensate for my lack of SS during the first few years of retirement. I will have to take larger withdrawals before SS than after, in order to do that. So, I separated that out extra withdrawal as "G Fund Principal".

The basic TSP equal monthly withdrawals that I will be taking even when I have SS is the "TSP" category, and I plan to COLA adjust it.

Wellesley is a balanced Vanguard fund (VWIAX) with primarily bond holdings.
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Old 06-01-2009, 07:32 PM   #15
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Retired - Age 65
SS 30%
Cola pension 30%
Non cola pension 18%
401K 20%
Non Cola pension 2%
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Old 06-01-2009, 08:11 PM   #16
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Retired

Stock Dividends 3%
Capital Gains (Bonds) 70%
Interest (bonds,CDs, MM etc) 27%

Capital gains will be going down as will the interest and the dividends will take over.
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Old 06-01-2009, 08:26 PM   #17
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Retired - Age 52

Pension (COLA) 70%
Dividends 30%
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Old 06-01-2009, 09:07 PM   #18
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Semi-retired. My part-time pay so far covers our expenses, except for about a period of 4 months without work recently when I needed to transfer cash from a money market account to the checking account.

I have been fortunate to afford to be casual about our investments, and have only looked at the total portfolio size. I have never broken out as to how much of the portfolio return comes from dividends, interests, and cap gains.

All I know is we have enough for 4% SWR to cover our expenses, even without SS.
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Old 06-01-2009, 09:56 PM   #19
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I am planning on living off interest and dividends. If SS is around when I reach that magical age it would be gravy. Now I just need to get to the huge dollar amount that I need to live off interest and dividends
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Old 06-01-2009, 09:59 PM   #20
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Retired, age 62:
Social Security25%
Wellesley dividends30%
IRA withdrawals20%
Nude modeling income10%
"Will work for food" solicitations8%
Blood plasma sales2%
Medical research income (chigger itch study participant)2%
Aluminum can redemptions2%
Fire ant pelt sales1%
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