SecondAttempt
Thinks s/he gets paid by the post
Now that I am just a couple of years out I am beginning to think about setting up the mechanisms for "operationalizing" my retirement finances. By this I mean figuring out how I will make withdrawals/sell investments, how much cash to keep on hand and where, and those kinds of things. I feel like I know a lot about the investing and savings side and virtually nothing about this aspect.
For example, I am assuming I should probably have several months of expenses in cash in a bank account (or money market). Should I make monthly sales/withdrawals to replentish that? Quarterly? Yearly? I'm leaning toward annually only because, at least early on, I may want to make tactical decisions for tax reasons on which year to sell in. But that could mean sacrificing some investing returns if I withdraw for an entire year and lose out on returns. Maybe I am overthinking this.
I also can't remember the last time I paid a fee to a bank (except credit card annual fees that I deem worthwhile for the benefits of the card) but that is largely because most banks waive fees with direct deposit. No job means no direct deposit.
I tend to keep most of my money at my main investment company (T. Rowe Price) but have healthy cash money market balances already. Years ago TRP had a monthly check program where they would automate withdrawals by sending you a monthly check. I don't know if they still do that but if so it is probably by ACH now.
The banks around here (Hawaii) all offer a bare bones free checking account (which might be fine for me) and then tiered "premium" checking accounts. Honestly I don't need most of the "premium" services they come with so those are not very attractive. But if I am keeping my cash in a local bank then they pretty much come free. I lean toward having a local bank simply because I like being able to walk into a branch when I have an issue and I tend to need to do so about once every year or two, usually for a cashier's check, Medallion guarantee, or similar. I also like having a safe deposit box. I am unhappy with my current local bank so, retirement considerations aside, I am looking to switch.
I do use a national bank (Ally) and consider it my main checking bank. I have no complaints about them. They just don't offer the branch services I seem to need at times.
So rambling seems to have drifted into "which bank is best." But the connection is, "what banking services should I expect to need to handle how I manage things in retiement?"
How have you all set up the process of getting your money from investments into a checking account so you can spend it or pay credit card bills?
For example, I am assuming I should probably have several months of expenses in cash in a bank account (or money market). Should I make monthly sales/withdrawals to replentish that? Quarterly? Yearly? I'm leaning toward annually only because, at least early on, I may want to make tactical decisions for tax reasons on which year to sell in. But that could mean sacrificing some investing returns if I withdraw for an entire year and lose out on returns. Maybe I am overthinking this.
I also can't remember the last time I paid a fee to a bank (except credit card annual fees that I deem worthwhile for the benefits of the card) but that is largely because most banks waive fees with direct deposit. No job means no direct deposit.
I tend to keep most of my money at my main investment company (T. Rowe Price) but have healthy cash money market balances already. Years ago TRP had a monthly check program where they would automate withdrawals by sending you a monthly check. I don't know if they still do that but if so it is probably by ACH now.
The banks around here (Hawaii) all offer a bare bones free checking account (which might be fine for me) and then tiered "premium" checking accounts. Honestly I don't need most of the "premium" services they come with so those are not very attractive. But if I am keeping my cash in a local bank then they pretty much come free. I lean toward having a local bank simply because I like being able to walk into a branch when I have an issue and I tend to need to do so about once every year or two, usually for a cashier's check, Medallion guarantee, or similar. I also like having a safe deposit box. I am unhappy with my current local bank so, retirement considerations aside, I am looking to switch.
I do use a national bank (Ally) and consider it my main checking bank. I have no complaints about them. They just don't offer the branch services I seem to need at times.
So rambling seems to have drifted into "which bank is best." But the connection is, "what banking services should I expect to need to handle how I manage things in retiement?"
How have you all set up the process of getting your money from investments into a checking account so you can spend it or pay credit card bills?