No. of Recommendations: 1
kmiao1 asks,

Okay, so you have a diversified portfolio (assume a 70/30 equity/debt allocation), and you are drawing the 4% SWR for a 30 year term. When you are drawing, you draw in a manner that rebalances your mix back to 70/30. Now when you encounter a recession or market downturn when you are scheduled to take another draw, how have people been handling that? That is, in that situation, do you:
(1) prioritize all the draw from the bonds/cash only and then rebalance only when the equities go back to normal,
(2) draw the 4% to bring the mix down to 70/30 even if you are cashing out of some equities,
(3) keep a bucket of cash on the side and draw from that and use the 70/30 to add to equities, and then replenish the cash when the coast is clear, or
(4) something else (please explain)?

</snip>



During the last stock market meltdown in 2008, I doubled my annual spending and went nuts on international travel and taking 3 or 4 cruises per year. With everyone else frightened to spend money, the bargains were unbelievable.

Now that cruise prices have returned to normal, I find I have less interest in that activity.

intercst
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement