If I am Laid Off and I need to use my Retirement Savings Early....
how do I prioritize and make use of the investment accounts to be used for the withdrawal of living expenses?
I have the following types of investments- Taxable Cash Equivalent Assets, Taxable Stock and Bond Investments, Employer Sponsored Retirement Plan Accounts (401k, 403b, defined benefit pension, defined contribution pension), Tax Deferred Accounts (Roth IRA). I have an emergency fund within the taxable cash equivalent assets, but I am trying to figure out what I would do if my unemployment continued beyond the length of the emergency fund.
I figure I am at least 8 to 12 years away from early retirement if my current income and savings rate continue into the future.
If i was laid off from work, and I couldn't obtain gainful employment for a couple of years, how would I pull from these various accounts? Also, within these assets classes, how would I decide which specific investments to sell off or otherwise use for my living expenses? Would I make selling decisions in an effort to maintain my stock/bond portfolio allocation? As an aside, in a situation like the one described, does one change their stock/bond portfolio allocation during the year(s) he/she is out of the workforce?
I appreciate your advice.