HW "Skip" Weldon wrote:

- quote -

That's a good idea, but you don't need dividend paying stocks because
you can write calls to gain additional income.

- quote -

I also am 100% in stock, but volatility does annoy me, however, I
believe the odds are in my favor.

--
Ron

Elizabeth,

Typically, during working years, people get a certain amount of money
a month and they figure out how to live on it.
The same thing applies in retirement. There is a rule of thumb that
you can take out about 5% of your portfolio every year and keep up with
inflation as well as not run out. You may want to do some research on
the withdrawal rates.
Then you need a budget that lets you live as well as possible from your
IRAs&401ks as well as any pension and social security.
Thats what I suggest.

Frank

Elizabeth,

Typically, during working years, people get a certain amount of money
a month and they figure out how to live on it.
The same thing applies in retirement. There is a rule of thumb that
you can take out about 5% of your portfolio every year and keep up with
inflation as well as not run out. You may want to do some research on
the withdrawal rates.
Then you need a budget that lets you live as well as possible from your
IRAs&401ks as well as any pension and social security.
Thats what I suggest.

Frank

On Mon, 12 Dec 2005 12:11:22 -0600, "Elizabeth Richardson"
<erichktn[at]worldnet.att.net> wrote:


- quote -

What I am working towards is not a recommendation for anyone else. My
plan (already started) is to gradually phase out of growth and value
blend funds towards 100% dividend paying stocks (funds and
ETF/Vipers). By my retirement age the move would be complete, and
then I would draw the dividends as a direct deposit to my checking
account. Where possible I would have custodians withhold income tax
and supplement with higher-than-required taxes from Social Security or
other pensions.

Again, this is not a suggestion for others. In my case I have always
been 100% in stock and volatility doesn't bother me. Further, there
is other income and other savings accounts (car, vacation, house
upkeep, etc.) My calculations show that I would continue to regularly
save in those dedicated accounts and that, except for minimum
distributions later (which would be reinvested into non-retirement
accounts), I would plan to never touch principal. At least that's the
plan. <grin





-HW "Skip" Weldon
Columbia, SC

in my mid thirties, this is a SWAG. I have a 401k, roth IRA, rollover
IRA and taxable dividend paying stocks which all come into
consideration. There is also additional ife insurance which probably
doesn't apply to the question.

My concept I am trying to build to:

I would withdraw the first 5 years of retirement income when I started,
probably from 401k. Put in two years in CDs, laddered to mature each
month, 3 years in TIPS, laddered to mature each year.

Then once per year, I would remove enough from 401k to replace TIPS
which matured. TIPS replace CD which was spent.

The idea is 5 years cash available to me, with occasional withdraws
from 401k (once per year) to backfill the money spent.

If I am more conservative, I will have 7 years cash outside the
retirement accounts. If a bad year occurs (where 401k drops in value),
I can delay withdraw for another year.

I have not researched what withdraw rules will be to make this happen.
Meaning this isn't equal withdraws, and I will have MRDs. Not sure how
to handle any of this, yet, for certain.

If I could find a way to have 5 years of income in non retirement
accounts prior to retiring, I would do that. The 5 year lump some
withdraw would be a huge tax hit for that one year, anything to lower
this tax hit would be considered.

Two things decide my planning, taxes and investment performance.

If I have a fixed product yielding 3% and another yielding 7%, taxes being
even, the 3% goes first.

If taking a required minimum distribution would impact my tax bracket, that
would figure in the thinking.


"Elizabeth Richardson" <erichktn[at]worldnet.att.net> wrote in message
news:J2jnf.271635$zb5.11844[at]bgtnsc04-news.ops.worldnet.att.net...
- quote -

"cal lester" <cal-lester[at]comcast.net> wrote in message
news:dnk9lh$8pi$1[at]domitilla.aioe.org...
- quote -

No, I am not referring to an MRD. Nor, from a previous responder is delaying
distributions a reality. I'm not asking you to make a recommendation for my
personal circumstances. I realize most of us are in the accumulation phase,
but the reason for the accumulation is the distribution. So, the question
was straight-forward: If YOU (any/all list members) were ready to draw from
your retirement plan, how would you do it?

Elizabeth Richardson

Elizabeth, IF you are referring to the MRD of an IRA, it would be difficult
to have an
automatic withdrawal, as the amount is DIFFERENT each year.
I simply use one of the many calculators that are available, insert my
last year balance, then take a single annual withdraw late in the year.
(just sent in for it).
Cal


"Elizabeth Richardson" <erichktn[at]worldnet.att.net> wrote in message
news6Zmf.144782$qk4.103931[at]bgtnsc05-news.ops.worldnet.att.net...
- quote -

Elizabeth Richardson wrote:
- quote -

I think that it might pay to delay any distributions that would be
taxable, but I would take disbursements from Roth IRAs last.

--
Ron

If you were ready to start taking distributions from your retirement
plan(s), how would you set them up? Would you set them up for a set amount
to be automatically sent to you, or would you be more active about it,
making a request for different amounts depending on current needs? What
schedule? Monthly, quarterly, or even less often?

Elizabeth Richardson