Cap_Scarlet
Recycles dryer sheets
I'm not sure if decumulate is a word or if there's another word I should use!
Anyway, I am interested to know if there are early retirees who are consciously planning to eat into their capital or who are already eating into their capital. Does that make you feel nervous? How have you set your portfolio up to deal with that?
Our situation is that we are early 50's (52 & 54) and about to stop work (three months). We will have around $2.5 million of invest-able funds and once we hit 60 should have enough income from pension schemes to meet the vast majority of our needs. However, until then the savings are pretty much all we have.
I've set up the portfolio so that it should throw off around $50,000 per year in income (dividends and interest) which means are remaining expenses will need to be met from capital (we estimate our annual expenses around $80-90k per annum).
We will be keeping around $500k in cash or secured funds (i.e. 6 years) means the rest we will not need to touch.....
....but after year of saving it still makes me nervous to start digging into those hard earned pennies.
What's your setup and how do your deal with the psychology of spening your stash?
Anyway, I am interested to know if there are early retirees who are consciously planning to eat into their capital or who are already eating into their capital. Does that make you feel nervous? How have you set your portfolio up to deal with that?
Our situation is that we are early 50's (52 & 54) and about to stop work (three months). We will have around $2.5 million of invest-able funds and once we hit 60 should have enough income from pension schemes to meet the vast majority of our needs. However, until then the savings are pretty much all we have.
I've set up the portfolio so that it should throw off around $50,000 per year in income (dividends and interest) which means are remaining expenses will need to be met from capital (we estimate our annual expenses around $80-90k per annum).
We will be keeping around $500k in cash or secured funds (i.e. 6 years) means the rest we will not need to touch.....
....but after year of saving it still makes me nervous to start digging into those hard earned pennies.
What's your setup and how do your deal with the psychology of spening your stash?