marko
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Mar 16, 2011
- Messages
- 8,503
I do something very very simple.
1. No cash bucket.
2. In my taxable accounts, I move the quarterly dividends to my checking account and spend them.
3. In my tax-advantaged accounts, I make no withdrawals and use them for rebalancing to my asset allocation which means no cash ever.
4. If I need more money than my taxable dividends give me (i.e. my checking account gets low), then I sell shares in my taxable account that have the highest cost basis so that I realize the least amount of gains which in turn are offset by previous tax-loss harvesting. I may even sell shares at a loss in order to increase my carryover losses and pay no tax. That means I might sell shares about 10 times a year as needed.
That's it.
You see I simply do not care nor worry about losses in the stock market. I don't even try to avoid them.
+1
Very similar for me. Except rather than sell shares, I also set aside dividends in my IRA and withdraw them once the after-tax dividends are depleted. Haven't had to sell shares since RE'd. This year, got to re-invest 50% of the dividends to boot.