I retired last year and am still learning how to reverse course from saving to spending.
I've seen that different people prep and transfer their spending money from investment account to checking account by year, quarter, or month. Or maybe they are prepping (i.e., taking IRA withdrawal and/or selling equities) it in their investment account by quarter or year but then setting up an auto-transfer monthly amount.
Anyway, I very much like the idea of setting up a regular 'retirement paycheck', but I'm not sure how to designate/organize money for lumpy expenses (property taxes, annual insurance premiums, vacations, dental work, etc).
Do people just leave that portion of the budget in the original investment, or do they sell/do a withdrawal and somehow set it in a separate investment position 'envelope' to be ready for spending at the right time?
Also, I had thought I'd maybe prep for a quarter or year but then put the money I withdrew from IRA/got from selling investments into short treasury bills (for example in a bond ladder for the upcoming year), but now I'm wondering if just leaving the money in a money market account is virtually equivalent?
And my Fidelity accounts always have a money market core position, but to organize the money could I have a second money market in the same account (like have both SPAXX and FZFXX in my Fidelity taxable account and keep my lumpy budget money or upcoming 'retirement paycheck' money in for example FZFXX while SPAXX remains the core position that dividends and surprise-cap-gains go into)?
I've seen that different people prep and transfer their spending money from investment account to checking account by year, quarter, or month. Or maybe they are prepping (i.e., taking IRA withdrawal and/or selling equities) it in their investment account by quarter or year but then setting up an auto-transfer monthly amount.
Anyway, I very much like the idea of setting up a regular 'retirement paycheck', but I'm not sure how to designate/organize money for lumpy expenses (property taxes, annual insurance premiums, vacations, dental work, etc).
Do people just leave that portion of the budget in the original investment, or do they sell/do a withdrawal and somehow set it in a separate investment position 'envelope' to be ready for spending at the right time?
Also, I had thought I'd maybe prep for a quarter or year but then put the money I withdrew from IRA/got from selling investments into short treasury bills (for example in a bond ladder for the upcoming year), but now I'm wondering if just leaving the money in a money market account is virtually equivalent?
And my Fidelity accounts always have a money market core position, but to organize the money could I have a second money market in the same account (like have both SPAXX and FZFXX in my Fidelity taxable account and keep my lumpy budget money or upcoming 'retirement paycheck' money in for example FZFXX while SPAXX remains the core position that dividends and surprise-cap-gains go into)?