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Old 03-19-2010, 07:30 PM   #21
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Well if you sell shares at time of rebalancing, I assume you're selling enough at that time to meet your annual expenses.

Unless you rebalance more than once a year...
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Old 03-19-2010, 10:31 PM   #22
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I rebalance each year and from the selling/rebalancing, I use that meet my annual needs.

Earlier this year, I starting investing in a Vanguard Payout Fund but have already changed my mind -- seemed to make work for myself than needed.
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Old 03-20-2010, 08:10 AM   #23
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We fund cash opportunistically as needed and rebalance by bands. Since core of our portfolio is balanced funds we expect to rebalance infrequently.
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Old 03-20-2010, 10:05 AM   #24
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I keep almost all my savings in an actively managed set of large/mid cap domestic stocks with a long history (and expectation) of increasing dividends faster than inflation (ADP, JNJ, KO, PG, SYY, etc). These generate around 3% currently, about enough to fund the 72t withdrawals (most of my $$s are in IRAs) that I live on.
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Old 03-21-2010, 11:44 AM   #25
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LOL-Thanks for the article. Quite interesting. Seems like their thesis is as follows: Income approach not the greatest because: 1) Probably won't be enough income from a portfolio with a reasonable chance of growth so investor has to increase portfolio yield into low growth securities (bonds and low growth equities) 2) This portfolio won't grow enough to cover inflation. However, if a reasonable growth portfolio meets ones spending needs why wouldn't it be a good stategy? Seems that they have assumed a 1.67% yield on a 100% stock portfolio. I think I could find a portfolio of reasonable growth stocks yielding more than that. Maybe 3% in todays market?
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Old 04-03-2010, 04:42 AM   #26
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Originally Posted by jerryo View Post
A related question -- what to do with a large chunk of cash.... I'll be closing a house in a couple of days, realizing a net return in the upper middle 6 figures. Will wire the funds to my money market account, but that's not paying much these days. Is there any place better to park the money in the short term? And, how would you cost average the bulk into stocks and bonds over the next year or two?
Where should I park the money Plan to retire in a year or two
Anyplace is better than money market funds. I'm at Schwab so I like using their Index funds. Very low costs and you can get in/out of most of them for free if you didn't like the looks of the market. I like ETFs and expecially tax free muni bond funds. In CA you can currently earn 6-8% tax free. There is risk but with ETFs you can put a sell order in at a level your comfortable with. Diversify with conservative ETF with stops. I would expect to make 6%. Smartstops.com will monitor 10 ETFs for you for $10 a month and recommend daily if you need to get out. You can decide if your have a long or short term strategy.
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Old 04-03-2010, 07:19 AM   #27
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Also, what's this about an "annual lump sum"? When you were working, did you get only one paycheck per year?
Just to add (for the "youngin" out there ) and being I'm retired, there is no reason to treat your retirement income/withdrawls any different than when you wo*ked, if you wish.

When I was still a wage slave, I was paid monthly (and paid my taxes due at that time). Now that I'm in heaven (sorry - retirement) I do the same.

Don't make it more complicated than it really is ...
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Old 04-05-2010, 03:04 AM   #28
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Anyplace is better than money market funds. I'm at Schwab so I like using their Index funds. Very low costs and you can get in/out of most of them for free if you didn't like the looks of the market. I like ETFs and expecially tax free muni bond funds. In CA you can currently earn 6-8% tax free. There is risk but with ETFs you can put a sell order in at a level your comfortable with. Diversify with conservative ETF with stops. I would expect to make 6%. Smartstops.com will monitor 10 ETFs for you for $10 a month and recommend daily if you need to get out. You can decide if your have a long or short term strategy.
I meant to say smartstops.net.

They monitor stocks and most ETF for long term and short term sell points and send out a daily recommendation. 10 for $9.95 a month and up from there.
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