I've seen some random posts on this, but I'm curious about what withdrawal strategies you are using and whether there are some rational strategies with longterm benefit.
I built up a cash warchest in our IRA,403b to get us through the 7 years until I take SS (in 2025, I think). Most of that is gone.
I think what I have been doing, to describe it too kindly, is seat of the pants. I withdraw from core stock funds when they shoot up (Usually about 1/2 of the yearly gain), stick the proceeds in cash or bond funds. When the market drops over-much (in my view) like in 2022 or most particularly 2019, I plunk some of that money back in stock funds. The rest funds withdrawals, although I'm cash-poor now. Once I start taking SS in 2025, the problem largely goes away, and when DW takes it in 2029, the problem is more going to be what to do with everything, so I'll probably hang out on the BTD forum for tips.
The easiest answer is when rebalancing, to use the excess % money (largely) to fund withdrawals, but I'm pretty much square on target, although the run-up since October has resulted in stock funds being a little rich. So any withdrawal strategies out there beyond the obvious rebalancing one, to use as a secondary strategy? I probably should phrase this better, but I think most of you will know what I'm asking.
My interim plan is to look at fund increases and draw from the gains this year. Fidelity Contrafund, for example, is up 30% YTD, which is a bit ludicrous. The S&P indexes have also shot up, although not to that extent.
As an example of the problem, my Fidelity Floating Rate fund is up 11% YTD, so I could fund 5-7% of our yearly withdrawal just by withdrawing this year's gains from it. But since I don't think the Fed will reduce rates quickly, that 9% yield is pretty tasty, so I'm tempted to withdraw beyond yearly gains from some other bond funds and wait on it until 2025 or so. Trying to finegrain withdrawals like this, though, is probably a mistake and a time-suck.
This is the disease of overthinking, and a classic First World "problem."