I'm trying to develop a better system and was wondering how you ERs handle your funds for annual living expenses, assuming that your pension & SS are not sufficient to cover all of your expenses and you need to draw from your savings/investments.
Do you forecast what your expenditures for the year will be (and, if so, what is this based on? (like % drawdown of portfolio or last year's detailed tracking or ?)) Do you then put those monies in a separate account someplace, and draw them down during the year? Or do you have the monthly draw deposited monthly into a checking account?
or
Do you include large anticipated "one time" (new roof, kitchen remodel, major trip, etc.) expenses in your annual forecast (or how do you handle those)?
And
What about unanticipated major expenses? How are those handled?
And if you have a surplus at the end of the year, do you use that to "seed" next year's spending account or ?
omni
Do you forecast what your expenditures for the year will be (and, if so, what is this based on? (like % drawdown of portfolio or last year's detailed tracking or ?)) Do you then put those monies in a separate account someplace, and draw them down during the year? Or do you have the monthly draw deposited monthly into a checking account?
or
Do you include large anticipated "one time" (new roof, kitchen remodel, major trip, etc.) expenses in your annual forecast (or how do you handle those)?
And
What about unanticipated major expenses? How are those handled?
And if you have a surplus at the end of the year, do you use that to "seed" next year's spending account or ?
omni