u/gzartman1974

If I use the following funds: 40% JEPI / 40% SPHD / 20% SCHD

Why can't I live off the dividends that have been paying 5% - 6% consistently for years, even paying more when the market is in a bear cycle? Shouldn't I be able to avoid sequence of returns risk with these 3 dividend paying funds? and not even touching principal like my grandfather used to do?

My 401K is currently about $370K, my wifes is 365K, home is paid off, cars paid off. I am looking at using the Rule of 55 to access my 401K in 5 years from now. I'm contributing $2,400 per month which includes my companies 8% match. I hope to grow my 401K to about $700K in 5 years. My wife contributes $800 per month to hers including her employer match. Her's should be about $500K in 5 years. Here is my plan and pick it apart if you want: At age 56 (in 5 years) will set my 401K to a 60/40 mix and I will use it as 1 bucket. In 5 years my wife will be 55 and will roll her 401K into an IRA also set to 60/40 mix. My 401K will need to stay in the 401K since I'll be using the Rule of 55 but I want to use it as a draw down bucket. Drawing it down to $200K over an 11 year period where we start taking social security. I figure if I start at $700K and withdraw $70K per year and it earns roughly 7% I'll hit my target. We'll let my wifes IRA grow for 11 years and hopefully should reach $1Mil in 11 years. We will both work part time in the bridge years from 56 me, 55 her until 65 when we can get Medicare. We can increase our part time hours to fight sequence of returns risk in the bridge years. At age 67 me 66 her we'll get roughly $5K per month in social security according to the website so we'll live off that and the withdrawals from her IRA until my planned end age of 92. Pick this apart please!