Remember after you retire, you’ll likely have about 30 years of life ahead of you, so other than losing an income source much everything else remains the same. Planning needs to cover inflation and a likely change in your risk tolerance.
How did you prepare for retirement?
Start exploring what activities you’d like to do. Travel and volunteering are common. Start planning on spending down savings. After a life of saving many find the transition to not saving awkward.
How do you manage your portfolio for income? Do you mainly draw on interests and dividends? would you harvest capital gains by selling stocks? How do you decide to do so?
What is the composition of your portfolios (% of stocks/bonds)? How much is dedicated to growth and how much to more ‘stable’ and dividend producing stocks?
There is no reason to change your portfolio to “income”. Given todays low transaction costs, whatever cash is needed can be acquired by selling a few shares. With planning harvesting cash can be done a few times a year or every few years. So unless something changes, risk tolerance, cash needs change, there’s no need for a significant strategy change.
There’s nothing special about dividends, dividends are essentially a forced sale of stock triggering associated taxes.
I use the two bucket approach, 3-5 years of draw is kept in cash equivalents. This is to prevent having to sell in a down market. The rest is kept invested. Every few years when the market is strong investments are sold to replenish cash.
Your draw is calculated as budget less income. So for example, your budget is $100k/yr and you get $30k Social Security, you’ll need to draw $70k from investments.
This makes the cash bucket $210-$350k, with a $70k annual replenishment. Of course all numbers are adjusted for inflation.
Next I’ll use the 4% rule to make sure I’m not drawing down my investments too fast.
How do you manage your cash?
Same as before.
how much time to you spend on managing your finances?
According to DW, too much time. The two bucket approach & rebalancing need only be looked at a couple of times a year. Ongoing prior investing activity is unchanged.
What other resources do you draw on to help you do that?
Given I’m obsessive about money, Excel, Quicken, Fool are my friends.