Huston55
Thinks s/he gets paid by the post
Lots of guidance on that in this thread.
http://www.early-retirement.org/forums/f28/best-cd-and-mm-rates-thread-2018-archive-93051.html
My withdrawal plan. Is this right?
- Thread starter Shabby
- Start date
Lots of guidance on that in this thread.
http://www.early-retirement.org/forums/f28/best-cd-and-mm-rates-thread-2018-archive-93051.html
FANOFJESUS
Thinks s/he gets paid by the post
Wellesley pays out so much money do you need any cash?
"Cash and MM aren't the same to me."
But they are the same. It's just that one pays more interest than the other.
"So my thought was put the years $$ in the bank account and watch it go down to 0. Then Dec 31st I pull another years worth from the 2.55% MM into the bank."
Yes, and then? Do you then replenish the MM account? From where? From stocks (Wellesley), right?
So your withdrawals are really from Wellesley, just with a 1 year detour through checking account and 2 year detour through MM.
Like many of the other commenters, I see no need to keep much of a balance in a 0% checking account. Keep your cash in a MM account and transfer the money you need each month from the MM to the checking.
But they are the same. It's just that one pays more interest than the other.
"So my thought was put the years $$ in the bank account and watch it go down to 0. Then Dec 31st I pull another years worth from the 2.55% MM into the bank."
Yes, and then? Do you then replenish the MM account? From where? From stocks (Wellesley), right?
So your withdrawals are really from Wellesley, just with a 1 year detour through checking account and 2 year detour through MM.
Like many of the other commenters, I see no need to keep much of a balance in a 0% checking account. Keep your cash in a MM account and transfer the money you need each month from the MM to the checking.
Dtail
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
+1
similar strategy, but way more complex
I have a similar strategy with my cash assets that I will use until my qualified accounts can be accessed. But, I am using CD laddering with my cash mix.
So 2 months cash in checking/savings (1.2%), 6 months in high yield MM (2.1% with 6 monthly withdrawals), then I have a mix of CD's with laddered dates of maturity ranging from 18 months (2.5-3%) to 5 yr (2.9-3.45%).
But this is only 1/3 of my assets and only needs to get me to 59.5 (from 47 assuming I can actually make the leap this yr). The rest is in a pretty diverse set of funds from municipal bonds (utahy, to international funds). Then a hefty dose in a liquid annuity from Tiaa Cref that I use to escape market bubbles when I see them.
I'd recommend you look at some higher yielding cash methods. And definitely seek out high yield MM accounts that can be easily transferred to your more liquid savings acct.
I have a similar strategy with my cash assets that I will use until my qualified accounts can be accessed. But, I am using CD laddering with my cash mix.
So 2 months cash in checking/savings (1.2%), 6 months in high yield MM (2.1% with 6 monthly withdrawals), then I have a mix of CD's with laddered dates of maturity ranging from 18 months (2.5-3%) to 5 yr (2.9-3.45%).
But this is only 1/3 of my assets and only needs to get me to 59.5 (from 47 assuming I can actually make the leap this yr). The rest is in a pretty diverse set of funds from municipal bonds (utahy, to international funds). Then a hefty dose in a liquid annuity from Tiaa Cref that I use to escape market bubbles when I see them.
I'd recommend you look at some higher yielding cash methods. And definitely seek out high yield MM accounts that can be easily transferred to your more liquid savings acct.
