Retiring When Market is High

[Navigator]

If the market falls by 30%, how does that change the individual items that are sold in portfolio to generate the withdrawal?

If the market fell 30%, I would sell treasuries to get my withdrawals and rebalance the portfolio to 60/40. I might also be tempted to change my mix to 70% stock and 30% treasuries if the market fell so much.

 

[COcheesehead]

If the market fell 30%, I would sell treasuries to get my withdrawals and rebalance the portfolio to 60/40. I might also be tempted to change my mix to 70% stock and 30% treasuries if the market fell so much.

To this I would add, tax loss harvest, then rebalance. Those tax losses are gold come tax time.

 

[audreyh1]

To this I would add, tax loss harvest, then rebalance. Those tax losses are gold come tax time.

Not only that, but it can be an opportunity to get rid of funds you are not happy with and switch to a better alternative. In my case I’ve been shifting to index funds when I have a chance with minimal capital gains or even losses if lucky.

 

[COcheesehead]

Not only that, but it can be an opportunity to get rid of funds you are not happy with and switch to a better alternative. In my case I’ve been shifting to index funds when I have a chance with minimal capital gains or even losses if lucky.

Oh I agree 1000%. I tax loss harvested out of some tired mutual funds into more tax efficient ETF’s. Never looked back.