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Originally Posted by ron244
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Sorry, I should have been more clear, we need about 20k to 25k from our IRA's each year and the balance from our taxable account.
Right now we have only 185k in stocks(ALD,GE,JNJ,KMP,KMR,MRKand PG). The yield is around 4% now. I expect about 200k within 60 days and another 200k when we sell a piece of property. I am considering keeping mainly dividend paying stocks in this account. I know that we should have a better return using a 40/40/20 portfolio, but living off of dividends would make it easier to sleep at night.
Maybe we should rollover the 401k which would provide about 25k/year according to an online 72t calculator. If I am understanding the withdrawal information for the "fixed amortization" method of withdrawal, it seems that the amount stays the same every year. So there is no cost of living increases? Anyway, if we do that, we will have about 500k left in the other IRA's-none of our IRA's are Roths. At some point I will try to figure out if it's worth it to switch some of them to Roths.
I appreciate your response, we are a few weeks away from ER and are trying to make sure we have all of our bases covered. Once we quit working, I'll have more time to think things out. It's kind of an exiting and scary period for us.
I appreciate your responses.
ronc
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I reread OP... need 50k in income.
My suggestion would be to get all 600k taxable to be in dividend paying securities... then compliment this dividend income (18k to 24k based on 3-4% yield) with 25k from IRAs. 25k would be 12*25k=300k based on 72t. I would put this in a bond fund (there are penalties for 72t running out of money before 59.5), so something stable like bonds or money markets would be my comment.
This would "draw down" one IRA, maintaining dividends throughout.
Pros to this include about 1/3 to 1/2 of needed income coming from dividends (a solid leg). Dividends tend to outpace inflation as well.
Cons include going against conventional wisdom (CW suggests sell off taxable accounts first). IMO this is outweighed by taxes (24k in dividends is less taxes than 24k taken from IRA).
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