No. of Recommendations: 0
BethCarter writes:

<<I like the idea of the 3-year averaged cash flow. An earlier response suggested something similar, pointing to a geocities retirement planner that calls for just over 3% withdrawals per year. For my portfolio, that amount is way more than our average annual expenses have been for the last 3 years, so that feels safe.>>

Don't lose sight of the fact that by retiring well shy of 59 1/2 you might not be able to get at your retirement plan or IRA money without paying a 10% early withdrawal penalty. The only way to avoid that is to use the "substantially equal periodic payment" rules of Section 72t, Infernal (sic) Revenue Code. Using those rules may or may not provide you enough income. For a discussion on the Section 72t rules, see the post on this board at . You'll find other threads throughout this board as well that address the issue of taking money early.

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