Looking for a little help on our retirement drawdown plan.
We’ve been going through the accumulation phase, for the most part lock into the company provided 401K selections. Between the both of us we’ve saved about 1.1 million, combined in taxed deferred 401K & tax free ROTHS. We need about 32K annually out of the portfolio to live, for us, very comfortably. I’m younger than my wife and overall we’re looking a making sure the portfolio lasts 40 years.
Here’s what I’m thinking about & I’m looking for input on why or why not it won’t work.
a. Invest 600K into a dividend producing fund that keeps a pretty consistent price and has a yield in the 3% range = 18K annually
b. Invest 400K in a broad market indexed funds and draw 14K inflation adjusted from principle annually.
In retrospect the accumulation phase of retirement planning looks pretty easy, I’m struggling with the draw down phase. We’re not looking to necessarily leave a finacial legacy behind but we also don’t want to run out of money. The idea of a reliable dividend income stream is attractive to me but I'm wondering what others have found works
Sorry if this is too basic or off topic
Willift
We’ve been going through the accumulation phase, for the most part lock into the company provided 401K selections. Between the both of us we’ve saved about 1.1 million, combined in taxed deferred 401K & tax free ROTHS. We need about 32K annually out of the portfolio to live, for us, very comfortably. I’m younger than my wife and overall we’re looking a making sure the portfolio lasts 40 years.
Here’s what I’m thinking about & I’m looking for input on why or why not it won’t work.
a. Invest 600K into a dividend producing fund that keeps a pretty consistent price and has a yield in the 3% range = 18K annually
b. Invest 400K in a broad market indexed funds and draw 14K inflation adjusted from principle annually.
In retrospect the accumulation phase of retirement planning looks pretty easy, I’m struggling with the draw down phase. We’re not looking to necessarily leave a finacial legacy behind but we also don’t want to run out of money. The idea of a reliable dividend income stream is attractive to me but I'm wondering what others have found works
Sorry if this is too basic or off topic
Willift