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Old 05-03-2017, 12:10 PM   #21
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Retired at 52, 6 years ago. Taxable account provides generous dividend flow to more than cover our expenses, so no drawdown of principal, mostly reinvested. Also have healthy beneficiary IRA which I am having to take RMD's from, as well as a Roth IRA that's still growing. I'm eligible for pension now, but will wait until 62 so not to be penalized for early draw. Social Security will probably be taken at 70 since we don't need the income.
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Old 05-03-2017, 12:29 PM   #22
Recycles dryer sheets
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Location: Redmond
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Quote:
Originally Posted by calmloki View Post
Ranked from greatest to least:

rental income
hard money loans
notes from property sales
interest from savings, PenFed certificates
distributions from stock & bond funds
social security
bonus/point money from credit cards/bank promotions
change I pick up when on walks
I retired Feb 2016 at 61
Similar ranking for us so far currently;
Rental Income and Notes 50%
Pensions (early) 25%
Sub S corp profit 15% (I mainly just pay tax on this, maybe less next year)
SS max early at 62 this year (so far just me) 10%

Future -some other pensions and wife's SS next year.

All that saving for retirement has yet to come into play.
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Old 05-03-2017, 12:31 PM   #23
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Retiring at 47, no pension for me. My withdrawal strategy is:

1) Rental income
2) Muni Bond Income
3) Interest
4) Dividends
5) Sell overweighted Assets from taxable accounts:
A) Unrealized S/T Losses
B) Unrealized L/T Losses
C) Unrealized L/T Gains
D) Unrealized S/T Gains
6) Sell other assets from taxable accounts (if nothing is overweight)
A) Unrealized S/T Losses
B) Unrealized L/T Losses
C) Unrealized L/T Gains
D) Unrealized S/T Gains
7) Sell from tax-preferred Accounts
A) Traditional IRAs
B) Roth IRAs
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Old 05-03-2017, 12:34 PM   #24
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Join Date: Apr 2014
Location: Houston
Posts: 891
Retired at 55 in early 2015. Took pension as lump sum. Living off taxable accounts for now. Have plenty there to last until other funds are fully available. Plan is to draw down all accounts as necessary for retirement income. Market returns have been greater than living expenses so far but that will eventually change.
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Old 05-03-2017, 12:40 PM   #25
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I retired in late 2008 at 45. That was 8 1/2 years ago. I have been living off the dividends from a bond fund which was set up from the proceeds from selling the vast company stock I cashed out when I left the company.


I also get some dividend income from a stock fund and two smaller bond funds. There is also some cap gain distributions which are income but I automatically reinvest. Any excess dividends get reinvested, too.


Waiting for me when I turn ~59.5 and later are what I call my "reinforcements." Those include unfettered access to my tIRA which was set up as a rollover from my old 401k, my frozen (since 2002) company pension, and SS. I also have a small Cash Balance amount which began when my company froze my pension. It isn't much, but I learned a few years ago I can access it at 55 if I need it, not that I expect to.


As long as I can get to age ~59.5 intact, things only improve after that.
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Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.

"I want my money working for me instead of me working for my money!"
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Old 05-03-2017, 12:45 PM   #26
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Retired at 53. Living off taxable account. Dividends and cap gains.
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Old 05-03-2017, 01:13 PM   #27
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Quote:
Originally Posted by OldShooter View Post
Better check on whether you are required to pay estimated taxes on those withdrawals this year. If so, and you wait, you'll get whacked with a penalty next April 15.
thank you, i did already this year it was 700 between the feds and the state. last year too, my tax guy sent me home with 8 envelopes the first 2 went out with my owed taxes.
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Old 05-03-2017, 01:16 PM   #28
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Location: Southern Cal
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Rental income
SS
Non-cola pension
Cola pension
Taxable account for discretionary spending, aka travelling.
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Old 05-03-2017, 01:29 PM   #29
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Location: San Diego
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Rental income
DH's SS
My micro pensions
Inherited IRA RMD
taxable accounts.


DH has full access to his IRAs but hasn't tapped them yet. I'll have access to mine in another 4 years. And I've got 7 years till my SS can be taken (at the earliest).
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micro pensions 6%, rental income 20%
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Old 05-03-2017, 01:32 PM   #30
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Near 100% taxable accounts. SS (equivalent) so far away, and I'll probably won't get anything meaningful.
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Old 05-03-2017, 01:49 PM   #31
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Location: Santa Paula
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I retired in 2009. About 70K income from 2 small pensions and 2 Social Security checks.
No mortgage, small property tax. 55% in IRA's. 45% in taxable accounts. I divide up my RMD among our 4 children on their birthdays every year.
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AA 60/35/5 considering SS and pensions a SP annuity
WR 2% with 2SS & 2 Pensions
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Old 05-03-2017, 01:49 PM   #32
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Pension and SS for us. I retired at age 52. The pension is DB and COLA. The pension dropped at age 62 by what the expected amount of SS would be then, but since I'd stumbled into a nearby low-stress job I put off SS until FRA at age 66. Quit the job at age 63 when things went downhill there and until SS started savings made up any needed differences. Now the pension and SS more than covers expenses. We do keep a large stash because if I pass before DW reaches SS FRA the pension takes a 30% haircut and SS goes away for her until FRA. The savings and IRA would more than make up the difference in the meantime.
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Old 05-03-2017, 02:43 PM   #33
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Retired @58 (now 72)

Military pension (covers great majority of expenses)
SS x 2 (occasionally used for expenses but generally saved/invested)
Small RMDs x 2 (saved/invested)
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Old 05-03-2017, 03:04 PM   #34
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Location: St. Charles
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Retired early 2016 at 60. No Pension. Spending is supplied by dividends, interest and cap gains distribution from both IRA (about 65%) and after tax accounts (about 35 %). We don't have the need to qualify for ACA subsidies, so we are pulling more from the IRA, along with some Roth conversions, to reduce later RMD's. We also have about 8% in after tax cash to cover any large "one time" expenses.

We expect to take SS at FRA, which will reduce our WR to less than 2% of current assets.

I guess we should be spending more, but we really don't deprive ourselves of anything. We just don't have expensive tastes.
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Old 05-03-2017, 03:11 PM   #35
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Retired mid 2015 @ 53.
Very nice private sector pension, but no cola or healthcare included.
Have a large taxable account @fidelity which generates about $1,100.00 per month in dividends (80% qualified) but haven't had to use any of that... yet.

Have 401-k & IRA total of 300k, a smaller pension of $284.00 per month @ age 60, & SS for later.

Very fortunate
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What's funding your retirement?
Old 05-03-2017, 03:15 PM   #36
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What's funding your retirement?

Retired four years ago. Plan is:
54 - 55 cash from RIF incentive.
55 - 60 401k and a bit from taxable.
60 - 70 IRA plus SS survivor pittance.
70 - 92 SS and IRA.
92 + I plan on being the governments problem or a new career as fertilizer.

Plan is to spend down assets but so far I have more than I started with in real terms....not that I'm complaining, and sure some years it'll not be true.
If I hit SS at 70 with a quarter of starting portfolio I'll consider it a win.
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Old 05-03-2017, 03:15 PM   #37
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I learned a long time ago to always answer that question with:
"The kindness of strangers"
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Old 05-03-2017, 03:16 PM   #38
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
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No pension, so I had been drawing down my after-tax investments while waiting for 59-1/2. Was able to draw from tax deferred accounts last year.

I just looked up Quicken to see that my last earned income was deposited on 5/18/2012. So, that's 5 years ago. Darn, I have been spending a lot of money. Looking at what Quicken tells me makes my head spin. And on 5/18/2012, the Dow was at 12369 and the S&P at 1295. The indices close today at 20958 and 2388. Imagine how much more money I could have if all that money stayed invested instead of spent.

And because I was not able to tap 401k until recently, I drew down my after-tax accounts. No more being able to make use of low tax-rate on dividends and cap gains, I now pay full-fare on taxes on the money drawn from retirement accounts. Man, that hurts.
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Old 05-03-2017, 03:18 PM   #39
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First year 40% pension and 60% investments. Pension is not COLA'd so that % will fall over time. Too young for SS.
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Old 05-03-2017, 03:22 PM   #40
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Quote:
Originally Posted by NYEXPAT View Post
I learned a long time ago to always answer that question with:

"The kindness of strangers"


Ha! Funny Blanche.
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