No. of Recommendations: 5
This one strikes me as one of the better i've found. But, not being a mathematics expert i'd appreciate knowing if others find it helpful as well...and if its accurate.
FWIW
My wife and I are in our early 60s (well, maybe closer to mid-60s) and I've been retired for five years. I was always the principal breadwinner.
Our core portfolio is around 50% BRK.
We sell 1% of our current Berkshore shares each quarter, which funds something over half of our living expenses. Last time I looked (Jan 1) the nominal and inflation-adjusted value of our BRK stock is higher than the day I retired.
So, for us it's not theoretical, but something we've executed, have bet the farm on, and is working well so far.
From a tax perspective, it's a question of selling the lots selected with the bases to maximize the tax advantages each year.
One point I'd like to reinforce re: seminal dates (65 = Medicare, 70 = maximal Social Security benefit, etc) is the positive impact on cash flow going from a high-deductible Obamacare plan to Medicare. We have a couple of expensive prescriptions. We're projecting our annual out-of-pocket health care costs will drop by ~60% in a couple of years, when we're both over 65. Right now...well, let's say it's not as expensive as having a kid in college, but is a little bit more than our grocery bill.
--sutton
