[jIM_Ohio]

Retirement has 3 phases for me-

early retirement
normal retirement
draw down

each with different plans.

Early retirement needs no more than a 3% withdraw rate to allow a longer withdraw period.

Normal retirement is when SS kicks in and a 4% withdraw rate can be used.

Draw down is when I start selling shares and the actual amount I have saved starts decreasing.

I have 3 pools of money:

Not taxed- these are my 401ks and rollovers. Right now this is close to 66% of what I have saved.

Tax free- these are my Roth's. Close to 1/3 of what I have set aside now.

Taxable- this account has a little in it now and is just one fund- PRPFX.

The goal is to get the taxable account high enough that it can be drawn down in early retirement. The next goal would be to pay taxes on the assets not taxed yet a little at a time (by converting them to a Roth).

The 401ks would also supplement income too (if needed) depending on 72(t), tax law at time of withdraw and similar.

Roth would only be used once other options are exhausted.

edit- I will probably purchase some form of an immediate annuity to increase the probability I would not run out of money because of early retirement. That depends on how much income I have coming from dividends in taxable accounts when I actually decide to retire.