Author Topic: How was your first time ....  (Read 4685 times)

tzukulika

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How was your first time ....
« on: May 25, 2017, 04:07:15 PM »
After a life of accumulating , I needed to withdraw some money for LIVING expenses.
I have retired last year and due to rather large severance package I had money to last me until now.
I withdraw a rather large sum, selling stocks to cover living expenses for about 3 years. It just buys me peace of mind.
But I do still have an uneasy state of mind.
How was your transition from ACCUMULATOR to well , moocher of your own money ?
What was your mental trick to get over this issue, if you *had* this issue ?

Financial.Velociraptor

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Re: How was your first time ....
« Reply #1 on: May 25, 2017, 07:00:16 PM »
After a life of accumulating , I needed to withdraw some money for LIVING expenses.
I have retired last year and due to rather large severance package I had money to last me until now.
I withdraw a rather large sum, selling stocks to cover living expenses for about 3 years. It just buys me peace of mind.
But I do still have an uneasy state of mind.
How was your transition from ACCUMULATOR to well , moocher of your own money ?
What was your mental trick to get over this issue, if you *had* this issue ?

[...As I nervously fumbled with her bra clasp...] "Huh?  What's that?  Wrong first time?

At inception of FIRE I was heavily into high yield stocks and had more than projected annual budget in distributions.  I didn't need to sell a thing to maintain my lifestyle.  I still slept nervously for about six months until it became part of the background noise of my life.  I think that is normal.
Achieve Financial Escape Velocity - Financial Velociraptor

tzukulika

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Re: How was your first time ....
« Reply #2 on: May 25, 2017, 08:52:50 PM »
well , 6 months <<< 1 year.
It is hard to switch from saving to spending when your whole life you were a saver first.
Anyway, it is still constantly on the back of my mind that maybe I don't have enough money.
And my wife she is downright terrified about it.

redrocker

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Re: How was your first time ....
« Reply #3 on: May 26, 2017, 09:23:00 AM »
I withdraw a rather large sum, selling stocks to cover living expenses for about 3 years. It just buys me peace of mind.

Me personally, I feel like a sum sufficient for 3 years is a *lot* of time that most of that sum could have been in the market at least returning dividends for you. The thought of my money continuing to work for me is what would give *me* peace of mind.

misshathaway

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Re: How was your first time ....
« Reply #4 on: May 26, 2017, 12:16:37 PM »
How was your transition from ACCUMULATOR to well , moocher of your own money ?
What was your mental trick to get over this issue, if you *had* this issue ?

Oh I feel for ya. Same situation. I touched almost nothing in 2016. I had a savings account that I had set up to pay groceries all along and I took smidges more from that for 2016. Then I knew I had to set up something more permanent. Following the lead from several posters here I redirected the dividends and capital gains from the taxable Vanguard funds into my checking account. Now I pretend it's a pay check. LOL mind tricks, but it works.
Passed ER first year anniversary - settling in

Greystache

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Re: How was your first time ....
« Reply #5 on: May 27, 2017, 07:03:29 AM »
I've been retired for two and a half years. I think everybody goes through this anxiety when transitioning from accumulation to draw down. When I was accumulating, I used to be positively giddy every time the stock market took a dump.  Stocks just went on sale! Let's buy more!  It's not so funny when you are withdrawing and you see your balance getting smaller.  Having only been at this for two and a half years, I have yet to experience a really big correction but I am confident that I will do ok. Just make sure you have a withdrawal strategy and stick to it. Trust your plan and don't panic.  Everybody goes through this and it does get easier over time.

tzukulika

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Re: How was your first time ....
« Reply #6 on: May 27, 2017, 09:40:22 PM »
anxiety , angst that is what I'm feeling , but like a good old engineer was not able to express it.
My wife, in her wisdom, she has this saying : "How are dogs and engineers related ? they both have sometimes intelligent eyes, but cannot express themselves "

Re: the 3 years ; sure it seems like a lot, but peace of mind is more important right now for me then the additional increase I may get in the market.
Like Greystache I have no experience going to the down-market rodeo. Hope is that the 3 years in cash will assay some fears, even I kinda know the math is working against me. Sticking with a plan in withdrawal phase should be the key , but I have not yet found the *prefect* plan.

 I will look into getting the dividends into the checking account; that seems like a good mental trick.

respond2u

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Re: How was your first time ....
« Reply #7 on: June 28, 2017, 12:04:47 AM »
It was liberating and anxious. I had enough money from my last job to last about 9 months, so I had a good head start before pressing the "I'm not working for money" button.

I didn't sell anything because I'd been accumulating dividends, but moving the money out of the brokerage account to the bank was the mark of a new chapter in my life.

As for the 3 years living expenses, I keep about that as well. Dividends historically have dropped less than price, but if another big one hits it'll be nice to not have to sell out when things are tough.

Getting a HELOC is another option that works for some. I've half a mind to move to a real low COLA country if things get tough, so not sure I want to commit to the HELOC route.

soccerluvof4

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Re: How was your first time ....
« Reply #8 on: July 03, 2017, 06:19:07 AM »
I'm actually with you on how you felt and what you did. I felt I had enough invested and keep 3 years at all times liquid. That's what helps me sleep at night. As long as you have your investments to cover your working investment plan then why not. Everyone does /has different ideas. The spending over saving takes time. Fortunately I retired at a time (2.5 years ago) that the market was going up so I was able to build that cash reserve, cover my costs and still have my portfolio build after my withdrawals. I will say that when the market tanks or has bigger correction I will invest at least half of my cash reserve. Don't worry about if everyone agrees with you or not as long as the numbers work when you run your tests. I think some people tend to drive themselves nuts trying to figure out how to save every nickel as opposed to enjoying their retirement.
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tzukulika

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Re: How was your first time ....
« Reply #9 on: July 06, 2017, 09:59:24 AM »
Ha !
My original post was almost 2 months ago. Funny how that angst washed away and now I'm more focused on other things , like will the fish bite tmrw and I hope it is sunny to go with my kids at the pool/beach/lake.
But I do sleep better at night and find myself NOT checking the stock market as obsessively as before (still couple of times a week though :-( ....)
My *consolation* is wife still works and she does provide income AND savings via her 401k.

mxt0133

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Re: How was your first time ....
« Reply #10 on: July 06, 2017, 11:39:38 AM »
My *consolation* is wife still works and she does provide income AND savings via her 401k.

WTF!  Your are not in draw down mode if you or your wife are still earning money and putting money into a 401k account.

Now if your wife were to leave you and take half, that would be a different story.  But you should have enough free time to ensure that doesn't happen.

tzukulika

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Re: How was your first time ....
« Reply #11 on: July 06, 2017, 02:44:41 PM »
Hey mxt0133
you are (partially) right on the first count and I hope to be wrong on the second count :-);
Draw down was for me liquidating the cash from checking account and taking money from my *stache*. These things DID happen, I'm not funding the living expenses 100% YET from my stache. Making it partial funding does not mean not drawn down mode.

Hopefully wife see  the light and join me in retirement. Her job is extremely stressful - with a lot of political pressure- from actual *politicians*. But she likes it and she thinks it serves a purpose (public, good feeling etc etc). I tend to disagree.
On the other hand having her at home will increase family tension, as my honey do list will never stop and my leisure time will likely be gone :-) . I have noticed this already with my mom visiting (she is here for 3 months). My yard is looking a lot better since my mom got here and it was ALL my doing. But less fishing.
First world problems.