08-25-2019, 03:14 AM
I am very fortunate to have an employer pension. They are a thing of the past. I think you are wise to "practice" your allocation mix in advance. It's challenging to find a sufficient yield other than stock dividends. Yields are likely to fall further. Option premiums could be some part of it, but they are going to be lumpy. Mine vary from very significant, to minimal as I shouldn't be chasing stocks very far with puts at these above average valuations. Over the course of a year the premiums are a significant part of my plan. The cash buffer is absolutely required if you want to smooth out the monthly draw. It would be easier to smooth out dividend payments with stock selection. (obviously) I think CD rates are going to go low enough to not even interest me. This is affecting current retirees already. They're almost forced to chase higher yield bonds and the risk reward may bite them from here. I think this is partially responsible for holding the market up going forward.