No pension, pre-SS, and currently withdraw monthly from a taxed deferred (e.g. IRA) MM account which receives almost no income; in fact, if I withdrew from a taxable or deferred, the short-term yield would be the same.
The only reason I do this is simply that I was paid (along with paying taxes - from my paycheck) monthly, before retirement.
I could withdraw on any cycle (daily, weekly, monthly, annually, whatever) but it would really make no difference IMHO. However, bening that I'm anal in nature as related to budget/taxes, these do change over a period of time, without my input for change.
Utility costs (I'm on a budget plan) change several times per year (up/down). RE taxes change (usually increase) various times a year, depending on the tax. Other budget items may change (such as increased costs for an elderly dog - as an example) over a period of time.
That means that the monthly budget changes over the year, and the amount withdrawn (along with taxes due) also change over time (did I mention I'm anal on budgets
). I withdraw only what I need to cover expenses for the next month.
Additonally, since DW is yet to retire, our tax situation is not the same year to year. During Jan through Nov, I also pay FIT on my withdrawls. In late November, I'll receive my current year's initial release of Turbo Tax and plug in the numbers to do a "guesstimate" of FIT due, with the taxes already paid by DW/me during the year. For the last four years of retirement, I have skipped having FIT tax taken from my December withdrawl since we have already paid enough taxes (along with DW's anticipated FIT for December yet to be paid) to ensure a $0 FIT refund/due.
BTW, I only pay FIT. No local/state income taxes are due on retirement withdrawls (if you fit the requirements) in my state.
That's what I do (since you asked)
As far as selling anything from my portfolio (be it equity or bonds)? It does not enter into consideration since DW (in anticipation for her retirement)/me have more than a few years in MM funds.
We sell and add to our cash reserve whenever an "up period" occurs - be it from GNMA funds last year, or from equity funds earlier this year. We never sell equity/bonds just to provide current income. While we may lose a bit on yield on holding the cash in short-term MM accounts, it makes us (financially conserative) much more able to absorb the bumps in the market...