Vanguard or Fidelity for servicing a 3% withdrawl rate?

[JMH221]

Hi,

I utilized a ton of great advice from here and decided on a 70%/30% equity/bond ratio.

Who is more user friendly for servicing my portfolio?  I want to have 3% auto-deducted and deposited into my checking account (monthly cadence).

If I choose Fidelity I plan on buying 70% FSTVX and 30% FSITX, thanks again for the help!!!!


Here are the details regarding my situation:

65 years young

Portfolio:
Traditional IRA Balance  $762,000
Roth IRA Balance  $172,000
Taxable    $378,000 

Pension:
$1,600/month (after taxes)

SS:
$1,000/month until 2020 then $1,600/month


Expenses:
$32,000/year   

[smiller257]

I use Fidelity, it is easy to auto transfer your monthly withdrawal into your personal checking account (or you can use a Fidelity debit card). I'm sure Vanguard offers something similar so I doubt you can go wrong either way.

I just have experience with Fidelity and I really like it.

Best of luck!

[lostamonkey]

Why do you need to withdraw 3% from your portfolio?

Annuities (Pension, and SS) cover $2600/month and your monthly expenses are $2667/month.

[nereo]

I'm assuming that you mean 3% per year deducted from your accounts (e.g. 3/12% per month)?
I also don't understand why you'd wnt to deduct so much when your pension + SS covers all but $800 of your annual spending, but I'm sure you have your reasons..

Vanguard will allow you to set up an automatic deposit from your portfolio into your checking account at any frequency you'd like (weekly, monthly, quarterly, etc).  You must select either a set dollar amount or a set number of shares that you will sell each time, but you can adjust that as often as you'd like.  It takes about 5 minutes to set up online.

[Exflyboy]

Or just set it up to pull out dividends..  I.e don't sell anything.

[Indexmantra]

Why do you need to withdraw 3% from your portfolio?

Annuities (Pension, and SS) cover $2600/month and your monthly expenses are $2667/month.

I had exactly the same question like you after reading this post.

I would actually start thinking about rolling over IRA assets into Roth IRA in an effort to pay as little in taxes today as possible ( otherwise in 8 years you will have to have RMD's and higher SS income)

[Exflyboy]

Why do you need to withdraw 3% from your portfolio?

Annuities (Pension, and SS) cover $2600/month and your monthly expenses are $2667/month.

I had exactly the same question like you after reading this post.

I would actually start thinking about rolling over IRA assets into Roth IRA in an effort to pay as little in taxes today as possible ( otherwise in 8 years you will have to have RMD's and higher SS income)

Actually this is a good point because at 65 Obamacare is off the table (you'll be on Medicare) so there is no benefit in trying to mimimise income (to around $22k in Oregon at least)  to maximize your subsidy.

Thus you can do Roth IRA conversions to the max of your 15% tax bracket but still get your taxable dividends tax free.

[Retired To Win]

Why do you need to withdraw 3% from your portfolio?

Annuities (Pension, and SS) cover $2600/month and your monthly expenses are $2667/month.

I had exactly the same question like you after reading this post.

I would actually start thinking about rolling over IRA assets into Roth IRA in an effort to pay as little in taxes today as possible ( otherwise in 8 years you will have to have RMD's and higher SS income)

It's a good idea to do some future tax planning.  It will save money on taxes.

I too don't actually need to draw any cash out of my IRA to fund my living expenses, but I still am having a set amount from the IRA direct deposited into my checking account every month.  Those withdrawals are based on the annual amount on which I will be able to pay the lowest residual income tax rate.