What's funding your retirement?

[Mulligan]

My retirement is solely funded by my pension. I just treat it like a work check without working. I have investment money but something will have to go terribly wrong for me to ever spend any of it. The longer I live, the richer my daughter will become.

 

[street]

Retired at 58 one year ago.
We live of off saving account. No investments have been touched and if we take SS in a few years we will never have to touch those investments.

 

[Debinnov a]

Retired at 57 (DH was 51) 3 years ago. No pensions sadly (I have pension envy!) Have taxable and IRA accounts. Have one rental that provides a small profit.

Assets invested very conservatively. Drawing down assets, but interest/dividends and rental income covers well over half. Then hopefully sell rental when social security comes online - between 66 and 70.



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[traineeinvestor]

Dividends and rental income covers the bills. No pensions etc.

DW's income is not necessary (but nice to have).

No drawdown of capital planned for any stage of our retirement.

 

[Midpack]

The SIRE vs FIRE question, I'm always surprised by how many of the former there are here. We don't have pensions or other annuities. Drawing for taxable only now, dividends/STCG mostly. TIRA's and SS later.

 

[capjak]

Retire in July 55/54.

Phase 1 55-62
36% Pensions (Non Cola)
38% Deferred comp distribution for next 5 years (than taxable account)
15% Dividends
11% Cash

Phase II 62-70

have to figure it out but Pension/Taxable than at 70+ SS, RMD

Interesting that when I run I-ORP it recommends taking money from 401k/IRA and converting to Roth up to the taxable limit that I set which has to be above 15% tax rate in order for it to calculate it.

 

[UnrealizedPotential]

I had savings in a taxable account plus sold my condo. I used the money to buy three different bond funds and the rest in stocks. I also have a 401k that can be accessed at 59.5, and a pension at age 58, and SS later. So in about 10 to 11 years and later my back up money comes into play. I should be fine.

 

[Ronstar]

Started retirement 3 years ago at 58 years old. Plan is:
58-63 Cash on hand, proceeds from real estate sales
63-65 Taxable
65-70 Taxable, IRA
70- Taxable, IRA, SS

 

[Hermit]

Retired at 57 (DH was 51) 3 years ago. No pensions sadly (I have pension envy!) Have taxable and IRA accounts. Have one rental that provides a small profit...

When I first got into defense contractor work, I had several sub contract employees working for me. They were making a lot more than I did. (I had cash envy!) I continued working for major defense contractors. They were happy with their laid-back lifestyle and didn't have money worries. I, on the other hand, moved from San Diego back to Denver with money issues being a major reason for the move. Now I am retired and have a great pension. I think they most likely continued to be happy in their situation too. Different strokes...

 

[RockyMtn]

Pension, SS, 401k, IRA or other investment? Are you drawing down on your assets or does your asset generate your retirement income?

All of the above will ultimately fund my retirement. At this point however only a non cola'd pension,deferred comp and an occasional consulting gig are handling the chore quite nicely! Deferred comp ends a few years from now. Another pension (small), SS, 401k and IRA await. Haven't touched any of the $$$ sitting in the taxable accounts. It just sits and grows.

 

[NanoSour]

Retired 4 years ago at 49/47.

50% Military Pension
50% After-tax Acct
IRAs/SS/DB Pension waiting in the wings.

DW resuming her career in the fall after 18 year hiatus to raise 3 offspring. I'll happily continue to hold down the fort.

 

[523HRR]

Retired at 49 five years ago. Living on Deferred Compensation distributions until DB pensions kick in at 60.

 

[imoldernu]

Retired @53... 28 years ago in 1989.
No pension.
IRA's... will take the last $$$ in 2018.
SS
Can't speak to the rest, except our $$ nest egg is about the same as the day we retired, so expect we'll have enough. Bonds and a small annuity that we'll take as cash value.
One of the big helps was not having to pay income taxes... yet.

Doesn't cost much to live happy.

 

[W2R]

Pension, SS, 401k, IRA or other investment? Are you drawing down on your assets or does your asset generate your retirement income?

Dividends (only, so far) generated from my taxable investments and the TSP; SS; and a tiny pension.

I bridged the gap before SS by living off the other three.

I haven't drawn down my investments as a whole at all, although I have been shifting money from the TSP to taxable each month, for tax/RMD reasons.

 

[Scuba]

Our sources are:
- Taxable portfolio total return and capital drawdown as needed (invested 70-80% in equities)
- Deferred comp plans from former employer
- IRA's (invested mostly in hard money loans)
- Pension
- SS

 

[Tom52]

Retired for 3 years and three months now. So far we are spending,
1. Interest from CDs
2. CDs that have matured from my 5 year CD ladder
3. Small inherited IRA that was converted to a 15 year annuity

I will continue this until I reach FRA of 66 in a little over 1.5 years.

Present value of CDs is just less than 20% of total retirement assets. Dividends, capital gains, and interest on the rest of retirement savings are being reinvested.

 

[I was misinformed]

Retired 3 years, now 61 y.o.

Currently

80% taxable savings
15% small pension
5% odd jobs

Next year

90% big and small pensions
10% taxable savings

Expect to put off spending my 401K and collecting
SS until ~70 y.o.

 

[audreyh1]

Been living off a subset of our taxable assets since 1999. I'd say we are drawing down those assets, except that so far out net worth has been outpacing inflation, so there isn't any drawing down going on. Most of our income is in capital gains, which is nice because that has a low tax rate.

 

[texcurtis]

Retired early three years ago at 54. The current plan:
54-56 buy out amount, saved leave amount & non-cola pension
56-62 non-cola pension & supplemental pension for Feds & after tax savings
62-65ish cola pension & before tax investments (TSP)
65ish to SS & cola pension & before tax investments (TSP)

 

[CyclingInvestor]

Retired 10 years ago at 48. Living on IRA 72t withdrawals (funded by stock dividends) thru this year, when 72t ends and I have more flexability.

 

[oma]

Sounds like pension and taxable accounts are what most people rely on. Good to know The future is bright!

Retired 8 yrs ago at age 47..... That's my situation....thankful for the nice recovery in the market since I left the workforce.

 

[big-papa]

Turning 56 in about a month.
Not retired yet but informed that the office where I'm working closes in 2 months.
Already interviewing but conceivable that this is the start of FIRE. Hope not, but is OK if so.
Otherwise, goal is to FIRE after my daughter has 1 semester of college to judge expenses at which time I'll be 58 1/2. We think we already have this taken care of but nothing like real data to inform the decision.

- No Pension (wife had one but we cashed it out and rolled it over into her rollover IRA)
- Assets are 40% in taxable accounts 60% in tax deferred accounts
- Live on taxable accounts until 59 1/2
- From 59 1/2 to 70 withdraw from Taxable and rollover IRA's in such a way as to minimize lifetime taxes, especially when RMD's kick in at age 70. Some guidance given when running I-ORP, but need to study all of this more.
- 70 onwards: Social Security + taxable + rollover IRA

For future consideration
- after retirement, consider Roth conversions (if they're still available). Multiple calculators I've run so far tell me this has marginal benefit, if any, in my situation.
- After age 70 depending on assets/health/spending consider a deferred annuity for 85 onwards.

 

[Koolau]

I guess our's boils down to the traditional 3-legged stool of pension, SS and savings. Most of our monthly expenses are covered by the first two. The latter is for all the fun stuff plus charity.

 

[Sue J]

Our retirement is funded by DHs pension which is roughly 15% more than our monthly spending.

I have part-time income of $4500-$5000 a year and we save that. I have IRAs that I don't withdraw from and an inherited IRA that I will need to take an RMD this year. We have CDs (3% and 5%) that get reinvested. I'm not taking SS yet, planning to wait until 65 or FRA of 66 and 2 months.

 

[bignoggins]

Retired 2 years ago (at 32). I put about 80% of my capital into 2 large strip malls, and I'm living off the cashflow. The other 20% is in equities and cash, which I don't plan on touching.