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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: albireo13 on June 25, 2018, 07:51:57 AM

Title: How do you implement your cash flow in retirement?
Post by: albireo13 on June 25, 2018, 07:51:57 AM

I am curious about this.   I have a FA right now managing my IRA only, about $400K.
I want to see how well he will do compared to the market.  His fee is 1.3%.
I know, I know ... anyway.

One thing he will do in retirement is generate monthly disbursements, much like a paycheck.
That's not a big deal but it got me thinking.   If I take over all my finances, how do I want to manage withdrawals from my 'Stache, etc?
  Would I take out monthly? ... quarterly? .. annually?  .. take out as-needed?
Taking out annual lump sums doesn't make sense to me.  Still,  I'd love to hear what other retirees do?   What works for you?   Anythings to look out for?

Thx,
Rob

Title: Re: How do you implement your cash flow in retirement?
Post by: Mr. Green on June 25, 2018, 11:47:19 AM

We are currently withdrawing yearly, mainly because it allows me to check out mentally. I developed the habit of constantly looking at our stash as we were building it and I needed to get away from that. I don't want to be withdrawing quarterly and then find myself hesitating to withdraw during periods of heavy volatility because my timing might be off. That's just noise I don't want to deal with.

So this puts all our living expenses for the next year in a savings account and I can not look at our investments for another year. I'll likely do our rebalancing then as well.