audreyh1
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
If you set aside the excess outside your portfolio, isn't that sort of a bucket? Or at least a bowl?
I had an excess from last year. It is in a HISA and I am applying it to this year's expenses. But I still consider it part of my portfolio, just part of the cash allocation.
Is there a benefit to giving it a label? It's just extra we can make use of however we want, whenever we want, and it is no longer exposed to the market risks of our retirement portfolio. It is kept out computing the withdrawal, the AA and the rebalancing.
We have quite a few liquid assets apart from our retirement portfolio, so this is seamless for us.
Jan 2 - withdraw X% of Dec 31 value of retirement portfolio. Rebalance remaining portfolio to the target AA.
That's it, until the next Jan 2, unless the portfolio really needs rebalancing, but it usually doesn't.