I agree on the "as needed" thing. To me that says they have no withdrawal strategy or spending plan. It seems to me that would be a source of marital conflict at best, and a recipe for financial ruin at worst. Unless of course they have more money than they could ever want to spend, then it would work just fine!Formulaic weirdo reporting!
Our automated monthly withdrawal from portfolio is just another monthly deposit into checking along with my pension and her SS.
1/12 of 5% of annual portfolio balance. The amount withdrawn is adjusted annually on Jan 1 based on prior month Dec 1 balance.
Coming up on 6 years of this and I'm very happy with it!
Looking at an double-digit "raise" in 2025 from portfolio if market holds onto gains (knock on wood).
Withdrawing from portfolio "as needed" would just result in continual disagreements between DW and I as to what constitutes "needed".
70% of our spending is discretionary so how does one even begin to define "withdraw when needed" in that situation?
I think this gets to spending "efficiency". A lot of retired people probably underspend due to fear of running out of money. While this may be great for their heirs, they would not be fully enjoying the results of their working years.
Statistics: Posted by GaryA505 — Sat Jun 15, 2024 3:19 am — Replies 40 — Views 3255