Drawing down from investment

Specifically, anyone here draw down from their stocks capital for retirement? How should one plan to do so, since the stock price fluctuate?

Like I'm planning to draw down from my capital to last a period of 10 years, I don't know if I should sell at the start of 1st year (lump), or even in advance (also lump if the price is high), or sell periodically to fund the retired life (price is unknown).

So Im keen to find out the practice of drawing down from people who have done it.

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Chris

21 Jun 2023

Have previously heard from full-time investors that they sold off equities equivalent to their annual expenses, at the beginning of each year. Guess no one can predict market performance...

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1M45

09 Jun 2023

There is this bucket strategy.

https://providend.com/retire-well-in-a-high-int...

However, if you follow the conventional wisdom. One of bucket will always be CPFLife because FA always assume you will work till 65. This is a very safe way to retire, sure enough money to last, but dont have much time to enjoy.

Nonetheless, you should have some income generating assets + cash equivalent that can cover your basic needs, if you choose to retire before 65.

Sell once a year, if market up, you sell more, if market down you sell less. The rest will cover by your passive income and cash equivalent.
Usually, will have x% equities, y%bond portfolio. Good time sell the equities and bad time sell the bond.

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