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This serves as an example of what some of us retired folks are doing in real life.

I retired 4 years ago. I'm 41 married with 4 children. I use a mechanical investing strategy and a mechanical retirement withdrawal strategy.

My payout period is 50 years. My withdrawal rate is 3.33% of total portfolio assets. My asset allocation is 17% cash and 83% stocks. (See fellow Fool intercst's "The Retire Early Home Page" for these details).

My mechanical investing strategy consists of 5 years living expenses in MMFs and the rest in a 12 stock RKE combination portfolio (R=FFRP method, K=KeystoneEPS, and E=PEG4 semiannual). In percentages, it breaks down to 17% cash and 83% stocks. You can find the different strategies on the "Mechanical Investing", "Foolish Workshop", and "Dow Investing/Foolish Four" boards.

The most important aspect of mechanical investing is to be mechanical and unemotional about it. I rebalance my four R and four K stocks in early January and my four E stocks in both January and July. I do not care what the market does over the short term.

My mechanical retirement strategy is to keep 5 years of living expenses in MMFs. Every January, when I rebalance all the components of my portfolio, I sell 4% of my stocks and add that amount to my MMFs. I then divide the MMF total by 60 to get my monthly draw for the year. I do this every year in an unemotional manner. I don't care whether the market goes up or down.

Any comments or questions?
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