Retiree financial questions

[rosarugosa]

For those of you who are now drawing from your accounts (IRA, etc.), how frequently do you take distributions - monthly, quarterly, annually?
What is your overall stocks/bonds asset allocation? I am thinking it is time for me to shift to a slightly more conservative allocation.
Thanks in advance.

[Rogar]

I have a small pension that covers about a third of my expenses. I do a transfer into my checking account from other funds about every three months when my checking account gets low, the amount based on any big or little expenses that might be coming up, like insurance or property tax. I'm not especially detailed about it all, but it seems to work and I've been at it several years now.

I'm a fan of the old, 100 minus a person's age equals the amount that a person should have in equities. These days I think many would call that conservative, but people get a little exuberant when the market is doing good. I try to re-balance that about once a year, but it depends on how out of proportion they are. If interest rates ever came up to where I though savings could beat inflation I'd probably be even more conservative.

[Tybee]

Hi Rosa, I take distributions monthly because I am using it as a regular source of income at this point, so went with monthly to replace my paychecks. I know others who take once a year and then go that route. For me, it helps to have it replace my paychecks, because it keeps me on track with my monthly spending.

I think at this point, and I am 61, I have something like 52% fixed income, 45% equities, and 3 percent cash, but they are counting the cd ladder I have in there as fixed income. I have two years of my monthly distribution in cds in case of market downturn.

[dado potato]

My policy for Roth IRAs is to let them increase (hopefully) in value until I reach the age of 75. When I do begin taking withdrawals, I plan to do so monthly, systematically, to reduce the balances to zero at age 84.

I also intent to have a number of SPIA annuity contracts bought between the ages of 73 and 75, so I would not begin to dissipate the principal in the Roth IRAs until the longevity risk had been transferred from my own long-term investment portfolio to insurance companies.

With these goals in mind, the Roth IRAs portfolio is
60% equity
23% bank preferred stock with floating rate dividends based on LIBOR
17% zero coupon municipal bond maturing in the year I turn 75.

Nothing herein should be construed as investment advice.

[dmc]

We are around 60/40 stocks to bonds, not including my wife’s pension. So far we have not drawn anything from my IRA, but we have been drawing down our regular accounts. From those I generally just take out once or twice a year as needed.

[frugal-one]

We are around 60/40 stocks to bonds, not including my wife’s pension. So far we have not drawn anything from my IRA, but we have been drawing down our regular accounts. From those I generally just take out once or twice a year as needed.

Same here