>When I look up something like "investment exit strategy for retirement", it shows me more specific advise that isn't related to retirement.
Because there isn't an 'exit strategy' for retirement, there are expenses. If you have $20k in expenses this year, you withdraw $20k. If you have $75k in expenses because you're taking a world cruise, you withdraw $75k. And you withdraw in such a way to strategically balance the tax treatment and maintain your desired asset allocation.
If your money is in an IRA or 401k you will need to withdraw Required Minimum Distributions according to the IRS's rules (age and dollar amount).
I take out money as I need it (a few times a year) and rebalance my investments annually.
Do you understand how annual income tax brackets work? Are you saying you want to take random 'chunks' of money out with no reasoning behind it and then....what? Sit in cash as you spend it? Why did you invest in the first place if you want to have mountains of cash sitting doing little to nothing? What are you going to do when your random chunks that you take out turns your entire portfolio to $0?
I follow an “income” method, meaning I don’t touch my principal, and just use the income that it generates. I reinvest about 25% of the income to keep up with inflation . I don’t have to deal with “rebalancing” or “buckets” or anything like that. I make sure I choose stocks and funds with secure dividend payouts and have a lot of positions so that if one does go bad, it has a limited effect. As long as the dividend is secure, I don’t have to be concerned with stock prices as much—I can afford to wait it out until the price improves. Or the accumulated dividends make up for the losses.
your post isnt really clear, are you retired or are you talking about trying to withdraw from your retirement funds while still working?
but your general point can be answered as, you just withdraw however much you need. given we have a progressive tax structure, it works in your favor to try to levelize your withdrawals as much as possible (ie withdrawing $500k in one year and nothing over the next 4 is less tax advantageous as withdrawing $100k per year for 5 years).
Try the retirement manifesto website. The guy, Fritz, retired a few years back and he has all of his strategies and results. He had a pretty well thought out plan, I think.
>When I look up something like "investment exit strategy for retirement", it shows me more specific advise that isn't related to retirement. Because there isn't an 'exit strategy' for retirement, there are expenses. If you have $20k in expenses this year, you withdraw $20k. If you have $75k in expenses because you're taking a world cruise, you withdraw $75k. And you withdraw in such a way to strategically balance the tax treatment and maintain your desired asset allocation.
If your money is in an IRA or 401k you will need to withdraw Required Minimum Distributions according to the IRS's rules (age and dollar amount). I take out money as I need it (a few times a year) and rebalance my investments annually.
Do you understand how annual income tax brackets work? Are you saying you want to take random 'chunks' of money out with no reasoning behind it and then....what? Sit in cash as you spend it? Why did you invest in the first place if you want to have mountains of cash sitting doing little to nothing? What are you going to do when your random chunks that you take out turns your entire portfolio to $0?
I follow an “income” method, meaning I don’t touch my principal, and just use the income that it generates. I reinvest about 25% of the income to keep up with inflation . I don’t have to deal with “rebalancing” or “buckets” or anything like that. I make sure I choose stocks and funds with secure dividend payouts and have a lot of positions so that if one does go bad, it has a limited effect. As long as the dividend is secure, I don’t have to be concerned with stock prices as much—I can afford to wait it out until the price improves. Or the accumulated dividends make up for the losses.
your post isnt really clear, are you retired or are you talking about trying to withdraw from your retirement funds while still working? but your general point can be answered as, you just withdraw however much you need. given we have a progressive tax structure, it works in your favor to try to levelize your withdrawals as much as possible (ie withdrawing $500k in one year and nothing over the next 4 is less tax advantageous as withdrawing $100k per year for 5 years).
Try the retirement manifesto website. The guy, Fritz, retired a few years back and he has all of his strategies and results. He had a pretty well thought out plan, I think.