Theseus
Recycles dryer sheets
- Joined
- Aug 4, 2013
- Messages
- 484
Today's spending money comes from pensions that cover about 33% of the budgeted needs. Have three primary retirement accounts, smallest of which holds cash that will supplement the pensions for about 18 months. Very low rate of return, but that money is, and needs to remain very liquid. Next account is about 36 months cash needs and remains invested in a 403(b) guaranteed investment (PRUGI) that pays ~1.75%. Very liquid, but at a rate of return that rivals CD's of a matching term, I'm OK with it.
By the time those two buckets go dry, and we would need to tap the primary account (which dwarfs the first two) we could opt to begin collecting SS and only need to supplement pensions + SS for a minimal topping off now and then. A more optimal plan has us holding off on SS until FRA, which at that point when combining pensions and SS our needs would be pretty much covered. The primary account is producing a steady stream of dividend income that is being used to purchase CD's to adjust the AA away from stocks as time goes on.
By the time those two buckets go dry, and we would need to tap the primary account (which dwarfs the first two) we could opt to begin collecting SS and only need to supplement pensions + SS for a minimal topping off now and then. A more optimal plan has us holding off on SS until FRA, which at that point when combining pensions and SS our needs would be pretty much covered. The primary account is producing a steady stream of dividend income that is being used to purchase CD's to adjust the AA away from stocks as time goes on.