My bills are paid by credit cards and pulls from my credit union. Highly automated on the expense paying side.
For the funds to pay the expenses I distribute from our TIRA accounts. Since I know my regular repeating bills are mostly paid by credit cards or pulls, I know near the end of a month what cash I will need for the following month. At this moment I need $5760 for February's expenses. So I transfer enough to pay the first couple of week's expenses due in February. I have sold VTI already this month, I just need to transfer from my settlement fund to my CU checking account. Later in February I will receive my SS benefits and those benefits will finish off any remaining expenses for the month. Repeat monthly.
So far as deciding what assets to sell, I sell whatever asset is overweight in comparison to our desired AA. Lately it has been equity holdings. Our largest holding for equities is Vanguard Total Stock Market Index ETF, VTI.
Our expenses drive our withdrawals. We have been running a household for over 50 years. So we are pretty good at it.
I'll second Michael McClung's book Living off your Money. I have read about pretty much any withdrawal method, but truthfully I use "seat of my pants" method. If I keep my eye on our expenses, our withdrawals will be such that our portfolio will support a comfortable, dignified retirement.
Broken Man 1999
For the funds to pay the expenses I distribute from our TIRA accounts. Since I know my regular repeating bills are mostly paid by credit cards or pulls, I know near the end of a month what cash I will need for the following month. At this moment I need $5760 for February's expenses. So I transfer enough to pay the first couple of week's expenses due in February. I have sold VTI already this month, I just need to transfer from my settlement fund to my CU checking account. Later in February I will receive my SS benefits and those benefits will finish off any remaining expenses for the month. Repeat monthly.
So far as deciding what assets to sell, I sell whatever asset is overweight in comparison to our desired AA. Lately it has been equity holdings. Our largest holding for equities is Vanguard Total Stock Market Index ETF, VTI.
Our expenses drive our withdrawals. We have been running a household for over 50 years. So we are pretty good at it.
I'll second Michael McClung's book Living off your Money. I have read about pretty much any withdrawal method, but truthfully I use "seat of my pants" method. If I keep my eye on our expenses, our withdrawals will be such that our portfolio will support a comfortable, dignified retirement.
Broken Man 1999
Statistics: Posted by Broken Man 1999 — Fri Jan 26, 2024 8:57 am — Replies 6 — Views 930