Has anyone reduced their IRA monthly withdrawal amount due to the new bear market?

[Al in Ohio]

I am not spending but a little over half my budgeted monthly expense rate. I have a few years bucketed in cash (was saving for potential ACA Healthcare subsidy as I’m 61). Was thinking of at least reducing my monthly withdrawal thru Fidelity so as to buy less at low share prices. Any thoughts?

 

[jazz4cash]

I don’t understand. It seems like low share prices would be an opportunity to buy more. I generally withdraw from fixed income allocation a few times/year, not monthly. My withdrawals are for expenses but I have also purchased ibonds.

 

[TheWizard]

No, to the OP.
But my monthly withdrawal amount is dictated by my RMD.

Regardless, I invest all excess retirement income into stock index funds in my taxable account, so it's all good...

 

[Trailwalker]

No, reduced withdrawal amounts due to being on the marketplace and wanting that subsidy.

 

[ERD50]

I don't understand. Why would you withdraw any more than needed to support your spending, w/o RMDs forcing it?

Is some info missing?

-ERD50

 

[TheWizard]

I don't understand. Why would you withdraw any more than needed to support your spending, w/o RMDs forcing it?

Is some info missing?

-ERD50

Maybe he was refilling his cash bucket, to keep his AGI low enough for ACA subsidies.
I'm not a bucketeer nor did I use ACA for insurance, so I'm kinda guessing...

 

[Al in Ohio]

No, to the OP.
But my monthly withdrawal amount is dictated by my RMD.

Regardless, I invest all excess retirement income into stock index funds in my taxable account, so it's all good...

Oh good point. It’s in another spending bucket, but buying back into the market at a similarly low price that it just sold out of the IRA at rather than sitting in my bank checking account earning nothing.

 

[Al in Ohio]

Maybe he was refilling his cash bucket, to keep his AGI low enough for ACA subsidies.

I'm not a bucketeer nor did I use ACA for insurance, so I'm kinda guessing...

You guessed exactly right and as I stated I am 61. Too young to he conerned with RMDs. Per my OP, my concern is keeping after tax cash in reserve to allow ACA subsidies for another LBYM ER millionaire who is delaying SS withdrawals yet will need ACA insurance when my spouse retires in a few years.

 

[Al in Ohio]

No, reduced withdrawal amounts due to being on the marketplace and wanting that subsidy.

That was my exact thinking but I should reduce locking in a loss by taking market withdrawals if I don’t spend that much, so I like the alternative idea of throwing excess back into a taxable bucket but in the market ( My Vanguard Balanced Low Tax Fund (another spending bucket).

 

[MarieIG]

No, doing Roth conversions at this year. May up planned Roth conversions if there is a significant drop from here.

 

[CRLLS]

I am not spending but a little over half my budgeted monthly expense rate. I have a few years bucketed in cash (was saving for potential ACA Healthcare subsidy as I’m 61). Was thinking of at least reducing my monthly withdrawal thru Fidelity so as to buy less at low share prices. Any thoughts?

We don't use a defined bucket process. We typically have had auto withdrawals from our IRA at Fido. When we see our cash bucket growing beyond 10-20 thousand above expected expenses, we stop the withdrawals. We did that just this month.

I'm not certain I understand your part about reducing to buy less low share. It is opposite the cash bucket method as I understand it. If you have a cash bucket that satisfies your plan, then certainly reduce the IRA withdrawal. If you not yet on ACA, it may be a ripe time for Roth conversions.

 

[Al in Ohio]

After thinking it through I just reduced my monthly withdrawal by 25%. Once the market rebounds a bit or my cash reserves run low ( whichever comes first) I’ll adjust upward again. It took only a few minutes online.

 

[Al in Ohio]

Thanks for everyone’s input.

 

[HI Bill]

Yes. I'm following the Variable Percentage Rate method, but can't bring myself to sell equities at a 'loss' just to max out the discretionary spending this year.

 

[Al in Ohio]

Yes. I'm following the Variable Percentage Rate method, but can't bring myself to sell equities at a 'loss' just to max out the discretionary spending this year.

That was basically my thoughts also.

 

[eytonxav]

If you are taking RMDs that could happen involuntarily depending on how the market ends and its impact on IRA balances.

 

[Al in Ohio]

If you are taking RMDs that could happen involuntarily depending on how the market ends and its impact on IRA balances.

As stated I’m only 61. RMDs seem miles away right now.

 

[Tadpole]

I am also in RMDs. I think the basis for RMD should be the current value of the IRA at the time the IRA is withdrawn, not the value on top of some past bubble (or trough).

 

[jebmke]

I am also in RMDs. I think the basis for RMD should be the current value of the IRA at the time the IRA is withdrawn, not the value on top of some past bubble (or trough).

Over the long term, a rule like that should result in a larger RMD, right? Assuming you are in equity funds and expect them to go up, over the long term, the value at withdrawal will often be larger than the value at the end of the prior year. If you don't expect it to go up then you are in the wrong investment.