What's funding your retirement?

[97guns]

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

Curious because if you've retired "early" then some of these retirement vehicles may not be accessible

 

[Danmar]

Retired at 56. Just a generous pension that started at 62 and my taxable portfolio. Had significant employee incentive comp (options and DSU's) that were cashed out in the first 5 years of retirement.

 

[2017ish]

Retiring in July. 57/56. Taxable accounts/IRAs/401ks. Not counting on it, but social under present law would kick in with a substantial amount for each of us at 70.

We will be doing total return investing/withdrawals.

E.T.A.--the ongoing poll thread covers this pretty thoroughly: http://www.early-retirement.org/for...into-your-fire-plans-85562-3.html#post1876057

 

[exnavynuke]

401k, taxable accounts, Roth IRA, and VA Disability compensation are what I'm planning on funding my retirement with in ~7 years (plus or minus depending on investments between now and then). SS in my 60's will supplement those as well.

 

[l8_apex]

Like the OP - 6 rentals. Unlike the OP - notes payable. Roughly split down the middle with respect the two providing income. No gold. No guns. Well, OK, a couple of guns, but they're used for hunting.

 

[GSMAN]

We are both 56 and retired. We are living on pensions, which cover 50% of our expenses and drawing from our taxable savings. When SS starts in 2022, all of our expenses will be covered at 100%.

 

[Nature Lover]

Retired at 55. Currently living on pension income. Fairly significant taxable portfolio available to fund additional discretionary, if/when appropriate. SS and IRA's for additional resources later. Investment income being reinvested for now.

 

[fosterscik]

Retiring in May & October. Small pension, less than 10% of total spending. The other 90% until SS will be from tax deferred accounts and after tax. Tax-free Roths held in reserve. I anticipate a ~5% withdrawal rate until SS starts. If we have a big downturn and our 8% cash reserves get depleted we'll start SS as early as 62 to keep withdrawals reasonable.

 

[euro]

deferred compensation draws, and dividends from taxable accounts

 

[pb4uski]

I retired 5 years ago at 56. Living off of taxable account savings so far. Started pension last year at age 61. Plan to start SS sometime between FRA and 70. We have IRAs and HSAs but have not yet drawn on them other than Roth conversions which is just a transfer from tax-deferred to tax-free and a reduction in taxable savings for the tax due.

Our taxable savings enabled us to retire early but I would have also had penalty free access to my 401k but we didn't need to use it.

 

[Blue Collar Guy]

my pension more than covers our expenditures, i had to write 20k in checks to uncle sam on tax day plus another 5k for estimated tax, that too was covered by the pension. Next April 15th i might have to sell some positions to cover the interest & capital gains tax hit.

 

[OldShooter]

my pension more than covers our expenditures, i had to write 20k in checks to uncle sam on tax day plus another 5k for estimated tax, that too was covered by the pension. Next April 15th i might have to sell some positions to cover the interest & capital gains tax hit.

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.

 

[ShokWaveRider]

Retired for the second and last time when I was 58, I am 63 now, (The First time was for 5 years to go sailing at 50). DW Did same a but at her corresponding ages, she is 58 now.

50% of our Nest egg is in CASH (Tax Paid) earning 3% for another 2 years) We live of that dividend interest.

The other 50% is in fixed income IRA & 427b (Pre-tax) earning 3%. We do not touch this income.

~6 Years Living Expenses in Cash in MM. (Not much return)

No Pensions. No SS....... Yet.

 

[calmloki]

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

 

[ponyboy]

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

 

[FIREd]

Living off of taxable investments - mostly dividends and interests, but also return of principal.

We are still 16+ years away from accessing 401K/IRA and 20+ years away from taking SS. No pension.

 

[SheitlQueen]

I retired at 60 and am now 63. Started taking social security widows benefits at 60 and also have rental income. Get my insurance through Obamacare. So far that income covers all my costs and I usually end up with extra money at the end of the month. I haven't had to touch any of my investments.

When I turn 70 I'll start taking my own social security and RMDs from my IRA's.

 

[walkinwood]

We've been living off our taxable accounts for 9 years now. We spend the mutual fund dividends and if needed, sell off shares to fund our expenses. So far, it has worked well. We're still a few years away from being able to tap retirement accounts and many years away from planned social security payments.

 

[nun]

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

Curious because if you've retired "early" then some of these retirement vehicles may not be accessible

Retired at 53 and lived off savings, dividends and rental income until age 55 when pension started. I'm now 56 and live off pension, rental income and dividends. The tax deferred and taxable accounts will be left to grow (untill RMDs are required) and when SS starts I'll probably just invest it.

 

[RetireAge50]

We will retire in October and will use Roth contributions, 401k 72t, taxable money, and pension money. Depending on healthcare situation may use home equity rather than 401k 72t. Later more pensions and SS being added.

 

[hesperus]

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.

 

[Happyras]

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.

 

[Rdub]

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

 

[Whisper66]

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.

 

[scrabbler1]

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.