I think you may have written the above prior to you being retired and now you are? If so, how have you solved the problems you describe above?mathjak107 wrote: ↑Thu Nov 19, 2015 5:43 am that is the issue spending down from the pp.
all well and good you have 25% cash but now that you spent it down below your rebalance point you have to rebalance and refill selling volatile assets . it may be no different from leaving the cash and spending it down equally from the other parts right from the get go ..
in a typical bucket system you exhaust the cash , then refill from short and intermediate term bonds which are no where near as volatile as stocks would be like long term bonds are. finally many years later sell equity's to refill bonds and cash
so instead of refilling from short and intermediate term bonds which may be down a little you are selling long term bonds which are something as volatile as the stocks or selling stocks or gold which run an equal chance of being down as much you are trying to avoid selling at a bad time .
with the pp you do not really have a non volatile 2nd line of defense to draw from if rates rise . .
i think anyone spending down from the pp has to examine this and find away to provide a secondary source for spending without selling assets as volatile as stocks are .
perhaps an income annuity may add time to allow other assets to at least recover before they are needed and prolong rebalancing to cash .
i don't know , how it would shake out as i never looked at the pp in that regard .
Vinny