No. of Recommendations: 2
Mr. Jim-
Can't thank you enough for the response to my question. After reading your reply a few times, I was particularly struck by this:
"put half the portfolio into BRK stock and half into a fund I've chosen. Each quarter, sell 1.4% of however many shares of each one are currently remaining. (any dividends that have arrived during the quarter can be considered like shares that have already been sold, reducing the sale size)."
A couple questions if you don't mind. Bear in mind my situation will not have any managed funds as long as I'm above ground. Rather, a fairly concentrated portfolio of 10'ish positions;
1. 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)? I'm going to assume 'timing' is next to impossible and that is the big consideration. Also, monthly withdrawals are in essence a dollar cost averaging strategy (during our accumulation phase)in reverse. That certainly makes sense to me. Over a couple decades an average is achieved.
2. Mechanically...a monthly 1.4% calculation, sale(s) and withdrawal is clearly a recurring process with some complexity baked in. Not a problem, I get it. I have not asked Schwab yet what they can do make a recurring withdrawal process easier...and perhaps more importantly, error free. Any suggestions on the mechanics? Not asking for a white paper...perhaps just some of the bigger pot-holes to avoid.
Again, much appreciated.
m
