Anyone Planning on Reducing Distributions from IRAs If the Market Continues to Drop?

[audreyh1]

Quote:

Originally Posted by bingybear Just curious, does this mean if your nest egg dropped by 50% you would take less than 50% of last years withdraw?

Yes. 50% drop in remaining portfolio means 50% drop in income from it. So after the prior year withdraw, it would mean slightly less than 50% of the prior year withdrawal.

A drop like that in one year would really only be likely if you were 100% stocks. A 50/50 portfolio would probably only drop ~25% in the same year depending on what you are invested in.

[GravitySucks]

I logged in to pull some cash from my IRA yesterday and checked the balances. I was expecting to see a horrible loss due to conversations posted here and the FinPorn channel blinking red at the gym over the last two weeks. Imagine my surprise when I saw I had nothing to worry about. The account had crossed a milestone threshold but only because bonds that are being held to maturity are listed at market.
I may actually pull more in 2019 as I put off replacing the roof this year but will not risk it next.
I've been retired over 5 years and even though I have been living off my savings exclusively till now I am up over 35 percent.
But to answer the question, another 25% drop and I might go back to Yeungling beer and only 3 trips in 2019.

[CardsFan]

Been retired almost 3 years. Not yet taking RMD's (7 years away), but we are living solely on investments. As much as I hate to see the portfolio go down, I need to remind myself of the great run up we have had in just these 3 years. Even with withdrawals, as of today the stash is about 18% greater than at retirement date. At 55% equities, if the market drops another 30% we will be about where we started.