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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Personal Finance / Retirement Investing
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Author: rayvt ✧☼🐝  😊 😞
Number: of 1282 
Subject: Re: Jim's 'annuitization'
Date: 09/21/23 3:09 PM
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Why withdraw monthly as opposed to the 'bucket approach' (selling enough to cover 2-5 years living expenses...logic being you aren't forced to sell a tranche in softer markets)?

1) Basically because the 'bucket approach' is an illusion. When you look at the entire situation over time and do a money flow diagram you'll see this. Guess what your portfolio looks like after the 2-5 year period is over. Right, identical to not having done that "cash bucket" at all. People wrongly focus on the 1st 2-5 years and ignore the remaining 30+ years.
Every day is the first day of the lifetime of your portfolio.

2) If you take a fixed periodic withdrawal then you _will_ get the average.
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This community has written 1,215 posts about Retirement Investing. The article-length ones it recommended most:
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