I think the most common definitions of FI is "passive income exceeds expenses' or a net worth of 25x expenses.
My question is for folks that don't have a high passive income, how do you structure your drawdowns? Monthly, quarterly, etc, and if you do a monthly draw down, how do you decide which fund or asset to cash in? Do a rebalance, and take the funds from that?
Background:
1) hubby will get a moderate DB pension at 55 (our planned retirement date), not enough for us to live on, but a nice start
2) We will have sufficient assets in registered and non registered accounts to make up the shortfall at a 3.5% withdrawal rate
3) excluding one off type expenses (replace a car, roof, furnance etc), we'll need approximately $2K a month
4) Our current investment mix is more 'growth' focused and doesn't throw sufficient dividends to makeup the shortfall - we'll have to sell some assets
Question, for those of you in a similar situation:
1) did you set up automatic monthly disbursemnts?
2) did you restructure to create more income focused investments?
Knowing myself, if I don't have some kind of structured/planned disbursements, I'll agonize over when/what to sell and somehow try and 'time' the market. Or live too much like a pauper to try and stretch out the next withdrawal.