misc. wrote:
Just curious, since you never take money out of the market what is your withdrawal strategy after retirement?
Will you withdraw a certain amount at regular intervals, regardless of what the market is doing? Will you withdraw certain funds first? Will you try and "time" the market and withdraw more when you think it is near a peak?
I'm asking because it is much more difficult to know when to sell than when to buy.
Things could change between now and when I retire, but I will likely withdraw 4% the first year and then adjust for inflation as needed each successive year. That's pretty standard. I'll likely reevaluate constantly, and by the time my wife and I are both 62 and can take social security also, I may not need or want to take 4% from my investments. I plan to have 30-40% bonds and the rest in stocks by then. IF I decide to retire earlier than 59 1/2, then I MIGHT just take 3% initially until I'm 60...will just have to see. With no debt (I will own my house outright before retiring), I can live just fine on 3% of what my portfolio is projected to be when I'm 55...if we have another big crash like we did in 2008, then I'll have to wait.