Comrades,
So on advice of all the wise ones in these forums we've got our stash arranged to minimize deep rectal penetration by tax collection entities. For simplification lets say exactly a million, divided as:
250k taxable - international stock index fund
750k retirement - total bond index fund, total stock market index fund, small cap index fund
In other words we've got the asset allocation we want and the all the international is in on the taxable side while everything else is in 401k, Roths, rollover IRAs, and a 457.
So when it comes time to stop working and pull money out to afford things like beer, how can this work? It seems basic rule #1 is you sell what has gained the most to accomplishing rebalancing but if there is also the basic rule #2 that you sell from your taxable accounts first so the tax advantaged side can continue to accumulate in a more joyful manner. Obviously the only way I can follow rule #2 is to sell from intl, but if that is the lagging asset class then I'd be violating rule #1 of selling by performance.
We're not quite there yet (withdrawing that is) but its-a-coming and I'm wondering if I should start thinking about moves to make in anticipation of solving this dilema.
Thanks in advance for kind advice!
So on advice of all the wise ones in these forums we've got our stash arranged to minimize deep rectal penetration by tax collection entities. For simplification lets say exactly a million, divided as:
250k taxable - international stock index fund
750k retirement - total bond index fund, total stock market index fund, small cap index fund
In other words we've got the asset allocation we want and the all the international is in on the taxable side while everything else is in 401k, Roths, rollover IRAs, and a 457.
So when it comes time to stop working and pull money out to afford things like beer, how can this work? It seems basic rule #1 is you sell what has gained the most to accomplishing rebalancing but if there is also the basic rule #2 that you sell from your taxable accounts first so the tax advantaged side can continue to accumulate in a more joyful manner. Obviously the only way I can follow rule #2 is to sell from intl, but if that is the lagging asset class then I'd be violating rule #1 of selling by performance.
We're not quite there yet (withdrawing that is) but its-a-coming and I'm wondering if I should start thinking about moves to make in anticipation of solving this dilema.
Thanks in advance for kind advice!