Poll: Push or pull?

[Hermit]

I push some and pull some. Pension and the late DW's SS are deposited in checking and pay normal bills. I started retirement with a huge bucket of cash that was supposed to pay for the kids' college and my retirement house. It didn't take long to realize I was going to come up short so I have been pushing the difference between my current income and what I will get from SS when I move to my account at 70. That push comes from my IRA once a year when the bank savings account get below a comfortable level. I pull additional funds as needed from the cash bucket (Ally CDs and savings) which is my only after tax long term accounts.

 

[Car-Guy]

I just order more checks when I run low.


Oh, and I fund it from various sources. Push, pull, siphon, transfer, dump, toss, etc.

 

[RobbieB]

I have all the dividends from the equities transferred to checking automatic every month. I have the interest from the muni bonds at Fidelity auto transferred to a money account that I pay the Fidelity credit card with.

And when I need even more dough, I sell something. So push-pull also.

 

[RetireBy90]

I voted then started reading. I just retired last year and for now I did a push from dad’s IRA, so. Could cut down on number of accounts. It was close to my budget, so put that in one account, then every 2 weeks push to checking I use to pay bills. Next year will liquidate mom’s IRA to close one more account. She did RMD before she passed this year, so none for me this year.

This way I get a “paycheck” every 2 weeks. Pull if needed for trips or other expenses.

 

[Oz investor]

i voted 'pull' but it is a little more complicated than that currently i particpate most of the dividend reinvestment plans offered in the stocks i hold ( not all the shares i hold offer such a plan )

so currently some cash trickles in to the bank account that MAY be used to pay expenses , go back into the portfolio or stay in the sidelines ,

HOWEVER when i 'officially retire ' ( move onto the aged pension ) i plan to selectively reduce my participation in the reivestment plans , but not exit them completely ( i expect inflation to rear it's greedy head in time )

i plan so far to only withdraw ( as opposed to rebalance ) when necessary

 

[rodi]

I am 90% push. I transfer money quarterly from a pre-tax account, paying taxes. This and some other small income sources that are taxed negate my need to file quarterly taxes. That quarterly lump sum is then auto transferred in monthly increments to our checking. That, combined with rental income, small pensions, and DH's SS make up our usual spending.

Some years I pull for lumpier expenses. For example, this year we did a family (4 people) to Europe... I pulled out extra (about 1/3 of the trip expense) ... I am more concerned about pulling extra for ACA premium tax credit considerations... Need to keep the income below a certain level or the extra spending money becomes MUCH more expensive.

 

[dtbach]

I'm 90% push and 10% pull. I have monthly (and some quarterly) payments to my checking account from all of my investments for a roughly 3.58% WR. If the checking account gets too full, it gets transferred to savings account.

 

[Montecfo]

Mine is definitely "pull". I have scheduled RMD withdrawals throughout the year. for my quarterly estimated taxes. Also June through September for our 4 sons' gifts on their birthdays.
Our living expenses are covered by SS and our pensions.

Just an observation. If you do not need the RMDs for cash flow, you can withdraw in Dec. The withholding is assumed to be ratable throughout the year. That will save you from paying tax on the earnings of the distributions during the year.

 

[USGrant1962]

Bacon for both.

Push for routine planned expenses including travel/vacay, I transfer $X on the first of each month to checking. Pull for taxes, renovation of second house, new car, etc. The later are budgeted, so my push is only a portion of my planned WR.

 

[scrabbler1]

Just an observation. If you do not need the RMDs for cash flow, you can withdraw in Dec. The withholding is assumed to be ratable throughout the year. That will save you from paying tax on the earnings of the distributions during the year.

Another advantage of doing the RMD near the end of the year is that you will have a better idea of what your tax bill will be, so you can better allocate the tax withholding toward federal and state taxes. I do this for my (snake-bit) friend whose portfolio and taxes I help him manage. He still works but has an inherited IRA he has to take an RMD from every year. He doesn't need the cash to pay his bills, so when I do the RMD for him, I split it out toward taxes to enable him to be in a "safe harbor."

 

[Montecfo]

Push so far but I just started last month. Just made it track expected annual expenses. I am sure will also do some pull for large and well as some un-push when cash accumulates.

All from taxed accounts so no issue there.

 

[bizlady]

Push.

My income is based on the Dec 31 value of my retirement portfolio. On Jan 2 (or whenever the next market/business day is), I pull out an entire year’s worth of income - a fixed X% of the portfolio - and move it to a high yield savings account. I set aside what I have estimated as taxes I must pay throughout the year, including estimated taxes, and the remainder is available for spending throughout the year.

So you could say that my withdrawal/income drives my budget/planned spending rather than the other way around.

After the annual withdrawal I rebalance my retirement portfolio if needed. Then pretty much leave it alone.

Exactly what we do, excess for the year goes into a taxable account and will get used in a very down year or for an extraordinary and unplanned expense/emergency. Part of the yearly budget includes a contingency fund to tap but the excess is a buffer. We spend on average about 8% less than our plan allows and that should improve slightly once we get on Medicare in a few years.

 

[Plantman]

When I first ERed I was still working part time and doing a monthly push. If I needed more cash I would just work an extra day here and there. When I fully retired I went to a quarterly push. Once I started collecting SS I switched to the occasional pull.

 

[ShokWaveRider]

We just like Bacon. Keep a few years cashish in MM.

 

[zippy2020]

We push. MIL was taking 3.6% of portfolio so we continued it after she passed away. We're spenders, and right now working on a long list of projects preparatory to downsizing and moving out of our SFH. Contractors only take cash, LOL!

But we're spenders anyway. Have absolutely no interest in dying with a big bank balance. No kids, no mortgage, LTCi policies to pay for eldercare, good pension with healthcare benefit 100% assignable. No need to hold back spending.

We will reduce the distribution once DH starts taking SocSec. Don't want to get kicked up into higher tax/Medicare bracket so keeping an eye on gross/net income every year.

Our adviser handles our portfolio and we are completely satisfied with the firm's performance. I used to work in financial services so got a personal introduction to an independent CFP firm, which is the only way he accepts clients.

 

[Kwirk]

Bacon. Pensions and SS, deposited to our checking account, more than cover expenses, including travel. Occasionally, we move lumps of accumulated unused income into an after-tax investment account. Rarely, we tap the after-tax investment account for gifts, large renovations, or a new vehicle. So far, the IRAs just sit and simmer, except for a yearly Roth conversion. RMDs (possibly) begin next year and I'll need to decide whether to merge that money into the existing after-tax account or to create a new one.