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This is a response to klouche's post: "Draw rates for screen blend in retirement". This is a topic that many of us have discussed to death on the "Retirement Investing" board and "The Retire Early Home Page" board.

I retired 4 years ago with the following strategy:
1. Divide the port value by 360 to determine the monthly draw
2. Start with 60 months of living expenses in a MMF
3. Every January, sell 4% of the stock portfolio value
4. Add the procedes to the MMF
5. Divide the MMF sum by 60 for your annual draw

For example, if you want to retire with a monthly income of $1K, you need $360K to start. You place $60K in a MMF and keep $300K in stocks. The following January, you sell 4% of your stock portfolio's value and add it to the MMF. You divide your MMF sum by 60 to get your monthly draw for the year.

Fellow Fool intercst has an incredible web page: http://www.geocities.com/WallStreet/8257/reindex.html dedicated to Foolish slackers like myself. You will find a wealth of information about what I like to call "Slacker Retirement".

Fool on!!


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