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)?


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.

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