Based on JohnSki’s post maybe others want to share their portfolio withdrawal methods.
Since one cannot trust the Venezuelan Social Security system for one’s survival I depend entirely on my portfolio. I take out whatever I need for my expenses. During my post working for money days the portfolio has not only provided but has increased a bit.
I round-up my RMD to the next $1,000 and withdraw that and then stick it in Vanguard or i-Bonds. I don’t really need much of the RMD at all. My projections have me good until age 100.
I/we live on our Federal government pensions. Long term debt free, virtually never pay interest, always pay off credit cards when due. I have a portfolio of two Tax Free Savings accounts that I recently stopped adding to. They contain 13 Canadian dividend payers that had to be over 4% when first bought.
I have no idea what the plan is for the funds but it seemed like a good idea at the time.
Tim
OT - Got a text last night from the Corporate Banker. "Just landed in Denver 940pm Have to find dinner at airport. Can’t wait for hotel Starving. Happy Birthday!
As an inveterate LBYMer for many decades, I never spend more than I take in from Social Security and investments. My husband is even more frugal and I buy him capital items (computer, armchair) over his objections even when the old ones are too worn out to even donate to charity.
My mother (before her death) scolded me and told me that I need to spend money, enjoy life, especially since I don’t have any children.
I told myself that I won’t stress over expenditures that are less than 0.1% of my net worth. That’s obsessive but it’s hard after so many years of habit.
I’m still adding to my net worth although I know that doesn’t make sense since I will probably live less than 10 years and almost certainly less than 20. I’m trying to withdraw from my portfolio but it’s hard for me do do psychologically.
Wendy (visiting sister in a few weeks, never mind the cost!)
" I’m still adding to my net worth although I know that doesn’t make sense since I will probably live less than 10 years and almost certainly less than 20. I’m trying to withdraw from my portfolio but it’s hard for me do do psychologically.
Wendy (visiting sister in a few weeks, never mind the cost!)"
Just make sure you fly first class… You can afford it.
Neurospouse often asks ‘why do we fly first/business class’ and I tell her that if we don’t Neuroson will.
We know not the number of our days, but for sure we won’t be travelling as much in our 80’s and 90’s (if we should be so lucky).
I mostly pay day to day living expenses from Social Security and pension. Have been retired 22 years. RMDs go mostly to income tax. Property tax, insurance, and large extra expenses come out of dividends. But most income is reinvested.
number of years ago I decided I needed a debit card to make ATM withdrawals abroad. I asked a bank officer how to use my new toy as I had never used one and he seemed shocked. He asked me what I generally did, without a debit card, when I needed cash. I said “I give my paycheck to my wife each week and when I need cash I ask her for it”. He just shook his head and showed me how to use the card. To this day, the only time I have ever used a debit card is at foreign ATM’s.
While I maximize the use of credit cards (for their generous perks), I have paid off every one since my first card (1972).
So what does that have to do with the question? When I want to buy something, I simply do. At the end of the year when I tally up the bank accounts and investments, in general (this year might be an exception, as was 2009 IIRC) the sum of the numbers is higher than the previous year. As long as I don’t do something extremely stupid, get extremely unlucky or have a brick fall on my head, I think we’ll be able to live the way we want until the two of us croak.
Thank you for recommending this post to our Best of feature.
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We know not the number of our days, but for sure we won’t be travelling as much in our 80’s and 90’s (if we should be so lucky).
Chuckle, Corporate banker daughter is in Denver doing some sort of financial conference (something about where people looking to borrow big bucks meet with people who have big bucks to lend I think). She called to chat with her dear old dad while doing her daily cruel power walk including ordering take out Indian food to take back to the hotel.
She asked when we can visit them in Orinda and spend some of the vast fortune (;-D) we have accumulated before grandma gets it all and hits the shopping channel.
She did mention that she is not used to the high altitude thin air thingy. Also that the hotel shut down their restaurant due to “no staff”.
My income has varied wildly all my working life, and still does from my portfolio in retirement. My plan has been and remains to live well below my means and almost always below my incomex, and to give lots away to charitable and political endeavors that I find fulfilling.
Living in Mexico has made this plan very viable even as my income from working has vanished.
