No. of Recommendations: 4
In a few years time, probably 2028, I will begin taking withdrawals from a retirement account.
The account is currently 100% Berkshire.
The withdrawals will be fixed (SEPP).
And because I can't control the price of Berkshire, I wanted to "work forward" and build a cash cushion.
For example, say the portfolio is $1m and the withdrawal $60k/yr.
There is nothing special about having only BRK in a retirement account, other than it is very non-diversified and thus has more risk.
Taking 6% withdrawal is well above the "save" SWR of 4%. You may want to take this discussion over to the Retirement Investing board.
Two other comments:
1) You can't control the price of any investment, not Berkshire and not the S&P 500 whole market. BRK isn't anything different here.
2) Statistically a cash cushion, also called a cash bucket allocation, is worse than just keeping all the money invested.
