Quote:
Originally Posted by l2ridehd
You need to set up a plan. That plan should include and income and expense budget. You should look at your investment strategy and build a SWR (safe withdrawal rate) that works for you based on your age and longevity expectations. Develop the budget first. What you need to meet all your expenses. Then look at your income. Pensions, SS, and then see how much you need to withdraw each month from your investments to make those match. Standard seems to be 4% annually, but you need to make sure that works. If you can do it with only 3% or 3.5% so much the better. Keeping your AA (asset allocation) at a safe balance (standard is age in bonds the rest in stock) and meet your expenses with a 3% withdrawal rate, adjusted each year for inflation, you should never go broke.
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This plan, with minor exceptions, has been my plan, since retirement. My exposure is that I have too much in the stock Market. I was hit hard in 2008, but thankfully I had enough pension & SS not to panic. So I stood pat. That has been made up by 2012.
The purchase of a 2nd home in TV in 2010, has reduced my stock, a bit, and the stocks I sold have out performed any appreciation in TV property. That said, the enjoyment of TV has more than matched the lag in appreciation.
I retired from a major company in 1987 and today have more income, by 25%. The stock market and a withdrawel rate of 2% or less has worked for me. That said, I am concerned about exposure to the stock market. The problem for me is that I have always tried to avoid taxes and in 25 years I have been retired, I have run out of tax avoiding options.