After reading Mr. Browne's Fail-Safe Investing book, I am seriously considering moving a portion of my IRA into the PP. I will begin taking funds from my IRA in 18 months to fund our retirement. How are others taking their retirement distributions from their PP. Do you take it from the cash balance and then rebalance all the investments to their 25% level? Appreciate any suggestions.
Thanks
Bob
How to handle retirement distributions from PP
Moderator: Global Moderator
Re: How to handle retirement distributions from PP
I haven't reached this point yet, but I think the general consensus is to take it from cash, and rebalance as normal when you hit 15% (or 35%) in any asset class. There was a good discussion going on in the BH thread regarding what is the maximum safe withdrawal rate. The consensus was generally 4% annually. You could of course accelerate this withdrawal rate if you are not as concerned with capital preservation.
"I came here for financial advice, but I've ended up with a bunch of shave soaps and apparently am about to start eating sardines. Not that I'm complaining, of course." -ZedThou
Re: How to handle retirement distributions from PP
Yes, my understanding is to take it from cash. Have dividends automatically transferred to cash. Makes it easier to rebalance and, at least for non-IRA funds, easier to track cost basis.