We have been spending down our nest egg so I can maximize my social security payment until I turn 70. I claim later this year. We are fortunate that my social security, my wife's current social security and wife's pension will cover all of our living expenses. Our retirement withdrawals from our self directed IRAs are for discretionary spending. We are healty, active and love to travel. We are motivated to spend now before we age out. I have seen numerous articles describing retirees spending profiles as a "smile", higher in the beginning, tapering off when the earlier activites become more difficult and then increasing again as age related infirmities start making regular appearances. My current plan is to withdraw 6% of our portfolio value each year starting next year until the RMD tables tell me I need to increase the percentage. In up years we get a little more. In down years we get a little less. I have allocated 30% our portfolio value into safe investments (CDs, ultra short term bonds, etc.) to defend our portfolio against market declines. That provide 5 years of withdrawals from safe investments giving our equity portion time to crash and recover. 5 years may of may not be enough protection. The equity portion of our portfolio is heavily influenced by Paul Merriman using highly diversified ETFs. Please poke holes in this strategy. It make sense to me but I am looking for input from people smarter than me.
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We have been spending down our nest egg so I can maximize my social security payment until I turn 70. I claim later this year. We are fortunate that my social security, my wife's current social security and wife's pension will cover all of our living expenses. Our retirement withdrawals from our self directed IRAs are for discretionary spending. We are healty, active and love to travel. We are motivated to spend now before we age out. I have seen numerous articles describing retirees spending profiles as a "smile", higher in the beginning, tapering off when the earlier activites become more difficult and then increasing again as age related infirmities start making regular appearances. My current plan is to withdraw 6% of our portfolio value each year starting next year until the RMD tables tell me I need to increase the percentage. In up years we get a little more. In down years we get a little less. I have allocated 30% our portfolio value into safe investments (CDs, ultra short term bonds, etc.) to defend our portfolio against market declines. That provide 5 years of withdrawals from safe investments giving our equity portion time to crash and recover. 5 years may of may not be enough protection. The equity portion of our portfolio is heavily influenced by Paul Merriman using highly diversified ETFs. Please poke holes in this strategy. It make sense to me but I am looking for input from people smarter than me.
Post: Riding the Rails
Link to comment from March 8, 2023