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Link to bucket method for withdrawing income at 59 1/2.
Old 02-07-2020, 07:44 PM   #1
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Link to bucket method for withdrawing income at 59 1/2.

Getting close to age 59 1/2. I remember reading a post about methods for withdrawing funds from 401Ks or IRAs into fixed rate investments (bank CDs) etc. for the upcoming year or two or three to avoid or mitigate withdrawals during a down market. Can anyone provide a link or synopsis for doing this?
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Old 02-08-2020, 12:19 PM   #2
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Originally Posted by Al in Ohio View Post
Getting close to age 59 1/2. I remember reading a post about methods for withdrawing funds from 401Ks or IRAs into fixed rate investments (bank CDs) etc. for the upcoming year or two or three to avoid or mitigate withdrawals during a down market. Can anyone provide a link or synopsis for doing this?
Bucket method is simply asset allocation. The very best descriptions are in books by Rick Ferri. "All About Asset Allocation" is a good one. Also, if you have a free account at Morningstar.com, read any articles by Christine Benz. She covers personal asset allocation and specifically for retirement.

- Rita
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Old 02-08-2020, 01:44 PM   #3
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What I am doing in this regard is I have an asset allocation of 65/25/10. The 10% is cash equivalent in Vanguard's money market drawing a little over 2%.

I have a few year's distributions sitting there and I will refill it once a year with dividends and/or selling stocks unless we are in a correction or bear. If needed I can leave all investments alone for a couple of years to allow my portfolio to recover before selling.
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Old 02-08-2020, 01:47 PM   #4
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I've posted these links several times since I stumbled on them. They're very easy for me to understand, which is saying something.

https://www.theretirementmanifesto.c...ment-paycheck/

https://www.theretirementmanifesto.c...cket-strategy/

It's working for us, so far!
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Old 02-16-2020, 01:13 PM   #5
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I've posted these links several times since I stumbled on them. They're very easy for me to understand, which is saying something.

https://www.theretirementmanifesto.c...ment-paycheck/

https://www.theretirementmanifesto.c...cket-strategy/

It's working for us, so far!


This is just what I was looking for, thanks!
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Old 02-16-2020, 04:53 PM   #6
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I've often wondered if the refilling strategy can be simplified as: if equities are below target, then don't rebalance and if equities are above target then do rebalance... and then the same for bonds.
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