Thank you for the detailed response. Since there is so much to digest, I will go through it when I have some quality time, but I just wanted to respond to your point in green.
I stated it in the original, long post. Here is the section along with a few cash flow-related details:
Thank you. I tired reading most, clearly missed that important detail.
Next set of macro math
$51,000 in expenses, a 4% withdraw rate/ distribution would be $61,000. From very simplistic math retiring with a 60-40 allocation would last 30 years using basic distribution guidelines (increase income 3% per year, rebalance portfolio each year, 60% stocks, 40% bonds)
$51,000 income needed
current age 50, minimum SS age likely 67 $31,000, pension of $24,000 at age 55
SO age 49, minimum SS age likely 62 $9000 (hers) then spousal benefit at 66 (when spouse is 67) pension of $1000 at age 58
Is claim and suspend still a social security option?
I would plot this on a timeline
2019 ages 50/49 need $51k from investments
2020 51/50 need 51k+3% from investments
2021 52/51 need 51k from investments
2022...2024 need $51k +3% (compounded) from investments
2025 need $27k from investments, $24,000 pension starts for you
then keep plotting this out until all incomes kick in
As I plotted this out, I saw a pattern-
start at a 60-20-20 allocation (stocks-bonds-cash) using the cash to be the $51k investments needed. As cash is spent, only rebalance to 25% of cash taken out (so if you spend $51k cash, the rebalance at year end suggests only liquidate enough for $13k cash). After 4 years you have set aside 5th years income in cash. Then once first pension kicks in, set aside another 1X annual expenses in cash and maintain the 2X expenses in cash until situation changes. I've heard the yield on Wellesley is twice this, so you could put $650k in Wellesley, this will replenish cash each year, then put rest in bucket 3. YMMV. Check yields on funds chosen for this bucket.
Then per the buckets discussion you have 2 or 3 buckets
spending money (cash) which is 4X expenses at retirement beginning, but once in 4 years in retirement this will be only 2 years expenses in cash.
second bucket is mid term, it's goal is to generate $27k cash per year (2% of portfolio). Dividends on S&P 500 of $1.3M would be about $27,000 per year. This means this bucket could be 80-20 stocks-bonds.
Rest of portfolio could grow/ be 100% stocks.