No. of Recommendations: 1
So it's about time for us to start spending our money, now that we are almost in (semi) retirement. And I have a few questions:

We are planning to withdraw 2-3%. We don't need to take the "standard" 4% SWR since my wife has a pension and is still working 1/4 time, and I feel better with a smaller amount given our youngish ages. But, here is the first question -- do I include cash when I add up our monies at the end of December (when we start the withrawals)?

So let's say the various accounts with have, retirement and not, plus the cash in savings and checking and cds, adds to 1 million. 2% is 20K. This leads to the second question:

When I sell a position, for instance, for $5k, and I move that cash into my checking account, that would be 5k of the 20k. That makes sense to me. But if I take $1000 from savings and put it into checking, is that 1K part of our 20k? How do I keep track? Any money that is moved into checking goes against the 20k allowed for the year?

Or maybe, going back to my first question, I don't include what is in the checking account when figuring out our worth? Then anything that goes into checking, wherever it comes from (savings, dividends, positions sold) is part of the 2% withdrawal?

I think the issue confusing me is the cash in savings and checking (and emergency fund cash / cds).

If I'm not making sense, someone will let me know!!


Lisa
in MA
but actually in FL this week!
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