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Old 07-26-2019, 08:38 AM
 
224 posts, read 82,831 times
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How do you handle your checking and budget money? I get the general idea that you can log into accounts, like say Vanguard, and have your dividends sent to a money market fund. You do the same with interest bearing accounts, like CD's. Then your total investments and savings would just churn cash. They won't go up, since the totals would stay the same. But you would have the cash they are throwing off each month or quarter going into the money market fund. If you have a pension and social security, they go to the money market too. Then you just set up an automatic withdrawal for a set amount each month from the money market. That withdrawal goes to your checking. You use the checking to pay bills, dining out, home repairs, etc. You don't worry about spending down the checking, because you know it is being refilled each month from your money market which is being refilled from your interest, dividends, pension and social security. So you wind up with a monthly payout that you kind of create yourself. In theory, it lasts forever unless there is some huge cash crunch that requires you to sell investments. Does that sound workable?
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Old 07-26-2019, 08:42 AM
 
72,551 posts, read 72,428,525 times
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there is no one answer ...... we raise cash once a year to live on by rebalancing the portfolio ...through out the year interest and dividends get reinvested .

generally dividends only account for 25-33% of the markets gains so drawing off normal size dividends will still allow a broad based fund to go up even without reinvestment
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Old 07-26-2019, 08:42 AM
 
Location: Kentucky
571 posts, read 325,490 times
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I'm interested to see how people manage their retirement funds also. I have a good grasp on saving and investing, it's the transition to spending that has me worried!
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Old 07-26-2019, 09:04 AM
JRR
 
Location: Middle Tennessee
3,741 posts, read 2,258,773 times
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We do not reinvest dividends from individual stocks in our IRAs or regular brokerage accounts. The cash in the IRAs gets moved into one of the mutual funds in the account when it hits a certain amount. Every Thursday, I look at how much cash we have in our checking accounts and what bills need to be paid the next week. If I need more in the checking accounts, I just transfer some of the cash in one of the regular brokerage accounts.
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Old 07-26-2019, 09:32 AM
 
Location: Scottsdale, AZ
8,002 posts, read 4,900,703 times
Reputation: 29289
Quote:
Originally Posted by raggedjim View Post
I'm interested to see how people manage their retirement funds also. I have a good grasp on saving and investing, it's the transition to spending that has me worried!
Our first year is a learning experience. I had eight palm trees pruned yesterday for $1000. They remove flower stalks and dead fronds. It won't be that much next year because half of that amount was for one tree from which no one had ever removed dead fronds. What a mess -- a literal rats nest. But now we know about that yearly expense.

Like many people we won't touch the 401(k)s until RMD time. Our company stock is inviolate; half the dividends go into checking, the other half are reinvested. It's taken longer than either of us thought for the SS payments to start. I'm still working and my draw covers our daily expenses plus my super-sized Medicare premiums. Our TIAA advisor told us we could take $50k immediately. I think we're going to do that to bridge the gap to SS.

I had planned to empty out the Silicon Valley house and prep it for rental but the spouse is not on board with that, so that's $5k a month we won't have coming in. So we're spending money we can't replace instead of a steady stream of rental income.

Be prepared to pivot if your initial planning doesn't work out. I wish I had had a backup plan.
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Old 07-26-2019, 10:17 AM
 
Location: Florida
4,423 posts, read 3,763,745 times
Reputation: 4224
Quote:
Originally Posted by jmp61616 View Post
How do you handle your checking and budget money? I get the general idea that you can log into accounts, like say Vanguard, and have your dividends sent to a money market fund. You do the same with interest bearing accounts, like CD's. Then your total investments and savings would just churn cash. They won't go up, since the totals would stay the same. But you would have the cash they are throwing off each month or quarter going into the money market fund. If you have a pension and social security, they go to the money market too. Then you just set up an automatic withdrawal for a set amount each month from the money market. That withdrawal goes to your checking. You use the checking to pay bills, dining out, home repairs, etc. You don't worry about spending down the checking, because you know it is being refilled each month from your money market which is being refilled from your interest, dividends, pension and social security. So you wind up with a monthly payout that you kind of create yourself. In theory, it lasts forever unless there is some huge cash crunch that requires you to sell investments. Does that sound workable?
Nothing wrong with what you are doing. I assume the left over money in the money market account is available for whatever you want that is maybe over your monthly checking account allowance. Not a bad way to manage.

I do like the earning from the investments flowing into the money market account as opposed to investing.
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Old 07-26-2019, 10:22 AM
 
29,967 posts, read 35,040,515 times
Reputation: 11858
Quote:
Originally Posted by rjm1cc View Post
Nothing wrong with what you are doing. I assume the left over money in the money market account is available for whatever you want that is maybe over your monthly checking account allowance. Not a bad way to manage.

I do like the earning from the investments flowing into the money market account as opposed to investing.
We reinvest everything. Sweep account money is new money from bank account
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Old 07-26-2019, 02:58 PM
 
6,906 posts, read 3,848,512 times
Reputation: 14117
Quote:
Originally Posted by jmp61616 View Post
How do you handle your checking and budget money? I get the general idea that you can log into accounts, like say Vanguard, and have your dividends sent to a money market fund. You do the same with interest bearing accounts, like CD's. Then your total investments and savings would just churn cash. They won't go up, since the totals would stay the same. But you would have the cash they are throwing off each month or quarter going into the money market fund. If you have a pension and social security, they go to the money market too. Then you just set up an automatic withdrawal for a set amount each month from the money market. That withdrawal goes to your checking. You use the checking to pay bills, dining out, home repairs, etc. You don't worry about spending down the checking, because you know it is being refilled each month from your money market which is being refilled from your interest, dividends, pension and social security. So you wind up with a monthly payout that you kind of create yourself. In theory, it lasts forever unless there is some huge cash crunch that requires you to sell investments. Does that sound workable?
I have my SS sent to my checking account, with Medicare deducted.

When I have a build-up of too much cash in the checking account, or not enough, I transfer to/from my FDIC insured online savings account (I get 2.2% interest right now). That's where I keep enough cash for big emergencies or could pay expenses for a certain length of time if necessary.

I have a MM in my investment accounts. It's part of my investments. I use it as a holding area for cash, used for buying or selling holdings, or receiving dividends.
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Old 07-26-2019, 03:19 PM
Status: "Put the Wet Stuff on the Red stuff" (set 21 days ago)
 
Location: USA
1,516 posts, read 481,166 times
Reputation: 1273
Keep all receipts for all credit card purchases. Log them on my checking account each evening when getting back home. Same approach for inline purchases. reduce checking account balance on an excel sheet, pay the AmEx when the bill comes in out of checking account knowing I preserved a balance to pay AmEx in full, get Membership points too.

Bank AmEx membership points to get something worthwhile , except airline mikes I hate to fly anywhere anymore. Been there done too much of that.
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Old 07-26-2019, 03:31 PM
 
72,551 posts, read 72,428,525 times
Reputation: 50055
I haven’t logged a thing in decades ....all our bills with one exception are all autopaid and anything I need to see is right there .... I never let our checking account ever get anywhere near a point we are living hand to mouth ..... there is no way I want to track anything manually
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