yakers
Thinks s/he gets paid by the post
I am in the decumulation mode (retired) and withdrawing from my TSP (401k type) account. have a plan to rebalance every 12 to 18 months if there is a significant change for target AA. My current target AA is 40% G(stable value) 40% C (S&P500) 15% I (total intl) and 5% S (small cap index), actual levels have drifted a bit. The TSP has a withdrawal 'feature' which I had not included in my plan which may make rebalancing unnecessary. When a monthly withdrawal is taken it is based on the actual balance in each of the funds on the day of withdrawal .( I could rebalance monthly if I wanted to neutralize this system) The TSP system actually looks good to me because it is always drawing more from 'winning' funds than from 'losing' funds on a monthly basis. Do other 401k or VG funds do this? Seems like it makes rebalancing unnecessary since the monthly levels of each fund are used for withdrawals.