Similar to W2R, my plan is to live on the interest from Muni bonds-currently 5% yield (no tax, thank you), interest from California tax-free MM cash sweep fund - currently about a 2% yield, and dividends - targeting somewhere around 2-2.5% on average.
I am trying to engineer an AA somewhere between 65/35 and 60/40 equity/bonds + MM + cash. This will give me somewhere around 3-3.2% withdrawl rate, but won't be touching the principal. The dividends and interest will go into the sweep fund, where they will continue to earn interest until I move them into the checking account, which earns taxable interest. I will have about 3 years of living expenses in the MM sweep/cash accounts at all times, and the interest and dividends will re-plenish those accounts.
I have a couple years (I think) to get the plan in order and the assets in their correct buckets, but I am targeting June of net year for my FIRE asset allocation, just in case. This should provide for all of our needs with the exception of any large expense. The 3-3.2% WR includes depreciation for cars, RV, and major home maintenance. Current thinking is to use those amounts to re-invest in munis and maybe equities, and when replacement time came, I would sell a few stocks as necessary to cover them. My WR also includes charitable donations of about 10% of my interest and dividend income each year, and an effective overall tax rate of about 10% (estimated, fed and state, on the dividends and a tiny amount on the interest from checking, munis and sweep are tax free).
Hope that helps.
R