No. of Recommendations: 2

"That is the particularly scary part of your potential plan. Early large withdrawals with a big drop after are difficult to recover from."

This depends on your plan.

We retired in 2005. Our first year withdrawals were huge. We built our home for cash and didn't sell our old home until December. In addition, we had to support 90% of our living expenses. We planned for those expenses and more.

When 2007 to 2009 came around, we were prepared for it. We had our expense cash to draw from. The 3 year cash cushion lasted through Oct 2010 when we made our first stock sale. We still had about 1 year of cash left. We took some dividend cash from our taxable brokerage to add a little to the cash through the recession.

We had a conservative plan and lived within that plan and it worked fine with a wide margin of safety.

All holdings and some stats on my profile page
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.