am wrote:Say you want to retire at age 50-55 with a combination of taxable account and IRAs. Pension and SS expected at 62 but will get higher benefit for both if I wait until full retirement age. The pension and SS will cover expenses but both may have a haircut before I get them. What withdrawal rate is safe for the period before pension and SS start? Would think it would be higher than 4 percent?
Here is what I'm doing to handle this situation. I have a Portfolio with X Amount. I am planning to delay S.S. until age 70. This will be 8 years to wait until S.S. Kicks in. So, I set aside 8 years of S.S. in another 'Account'. My portfolio that remains, I withdraw my 3-4% from (Whatever number you are comfortable with). And spend that amount plus 1 year of the separate account that will be depleted when S.S. kicks in. I will use 3% of Remaining Portfolio Balance each year for my Portfolio Withdrawal Amount.
And you are correct the Total Amount Spent will be a lot higher than 4%