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My wife and I are 43. We have 4 children. We retired 5 years ago. This is how we do it.

Our retirement portfolio contains 12 stocks. We pared down a 20 maximum stock mechanical investing (MI) portfolio blend to a MI blend with 15 maximum stocks. Usually there are less because of screen overlaps.

Our MI screens:
30% Key100 Annual (4 out of 5 stocks)
30% PEG Semi-annual (4 out of 4 stocks)
20% RS-O Quarterly (2 out of 3 stocks)
20% PEG-O Monthly (2 out of 3 stocks)
YTD Performance=7.7% Max TER=1.5%

So far, only the Drip and Boring portfolios in the MF strategies section are beating our blend's performance year to date (YTD).

Like TMFPixy, we hold a certain percentage of our portfolio in a laddered cash portfolio. We use a 2.5% withdrawal rate of the MI stocks' value on the 1st Friday in January to cover our annual income needs. We take the procedes from the stock sales on that day and buy a new 2Y CD. We then divide the cash portfolio total by 72 to come up with our monthly income for the year. Looked at as a portfolio whole:

05% MMF (2 years of living expenses)
05% 1Y CD (2 years of living expenses)
05% 2Y CD (2 years of living expenses)
85% MI stocks

Looked at as a net worth whole:

10% Laddered cash portfolio
20% Owner occupied properties
70% MI stock portfolio

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