Creating a Retirement "Paycheck"

Since retiring in 2007, we typically have withdrawn funds monthly from our taxable accounts to pay for living expenses.   Last year, I decided to automate the process to simplify our lives somewhat.  For reference, I do not have a pension, but I am receiving Social Security payments since 2022, which gave me the idea.

In our brokerage accounts, there is a feature that allows automatic distribution of dividends and interest on a frequency (daily, weekly or monthly) chosen by the owner.  We chose monthly.   Now, we receive a monthly payment in the form of a ACH deposit to our checking account.

Unlike a paycheck, the amount varies month to month since I did not structure the income from CDs, bonds and dividend stocks to be equally distributed on a monthly basis.  That would have been way too much work.   Sometimes the distribution is greater than our expenses and other times, it is lower.   On the lower months, I can adjust by making a withdrawal, but by then I know exactly what is needed, instead of estimating the entire months needs.

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This is not financial nor retirement advice. Please consult a professional advisor.

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