davemartin88
Full time employment: Posting here.
- Joined
- Aug 26, 2008
- Messages
- 812
We're about 18 months away from needing to live off our retirement savings and trying to understand the best way to actually withdraw at a safe withdrawal rate. If we're looking to generate about $35-40K per year from a $1M savings, how would we want our assets to be invested. Let's assume about $350K is in retirement accounts and the rest in taxable accounts.
It's just not clear to me how you set up an actual stream of income? Do we look to keep a 60% bond/40% equity asset but also invest in dividend producing stocks? Buy an annuity, (just kidding!), seems like in years where we make a profit, relatively easy to harvest the income but in years where we have losses, do we still sell to produce the income while trying also to keep a reasonable asset allocation?
Anyone recommend a good book that actually talks to the mechanics of producing the income you need?
Tried some searches but got a lot of information about what is a safe withdrawal rate as opposed to how to actually structure the withdrawals. Maybe I didn't use the right search string?
It's just not clear to me how you set up an actual stream of income? Do we look to keep a 60% bond/40% equity asset but also invest in dividend producing stocks? Buy an annuity, (just kidding!), seems like in years where we make a profit, relatively easy to harvest the income but in years where we have losses, do we still sell to produce the income while trying also to keep a reasonable asset allocation?
Anyone recommend a good book that actually talks to the mechanics of producing the income you need?
Tried some searches but got a lot of information about what is a safe withdrawal rate as opposed to how to actually structure the withdrawals. Maybe I didn't use the right search string?