mistermike40
Recycles dryer sheets
- Joined
- Aug 6, 2014
- Messages
- 364
Do you still take your full withdrawal on a day when the market is down (like today)? Or do you wait until (hopefully) the market recovers a bit?
I'm not sure I have it worked out best, but I take out next years expenses the previous year. Last year I took about $120,000 out of a taxable account that resulted in $28,000 of LTCGs. This added to my Dividends and interest, a $1,000 short term gains and a $75,000 Roth conversion kept me in the 12% bracket.
With the funds from last year, I funded an HSA, paid my daughters large tuition, and have about $50,000 left to fund my sons Roth IRA and enough for our 2021 expenses. The thing I should do, is find a place to earn a few percent on the $50,000 before it gets spent on living expenses.
Any thoughts?
I only do a few months at a time. That way I don't have as much extra lying around in the first place.
Do you still take your full withdrawal on a day when the market is down (like today)? Or do you wait until (hopefully) the market recovers a bit?
Do you still take your full withdrawal on a day when the market is down (like today)? Or do you wait until (hopefully) the market recovers a bit?
Something to think about when we start taking RMDs for DW starting in three years, unless they extend the minimum age requirement out further.
That said, we do have a small inherited IRA we are required to take RMDs from. Since it probably wouldn't matter much when we take it, I usually wait until the end of the year and use the RMD to backfill withholding, if needed.
The only withdraws we make are RMDs. The total amount is taken from the tIRA MM fund that is replenished by the dividends swept from the tIRA MFs. I don't see a time when we will need to cash in any shares of tIRA MFs. We still have the same number of MF shares that we retired with only they would cost more today. When we withdraw is not dependent of the stock market.I keep enough in cash (money market) that I just withdraw from the cash as I need it. Don't have to worry about the market
Normally I just withdraw the money from my Vanguard taxable accounts during the first week in January, without regard to short term market fluctuations. I take a long term point of view when it comes to annual withdrawals.
I must embarrassedly admit that I haven't had to make an annual withdrawal from my Vanguard accounts for the past three years, because of other income sources that meet my spending needs (SS, mini-pension, etc). But back when I was withdrawing, that was how I did it.