Post #178 by rayvt on the Retirement Investing board

If someone appears to be repeatedly personal, lean towards patience as they might not mean offense. If you are sure, however, then do not deepen the problem by being negative; instead, simply place them on ignore by clicking the unhappy yellow face to the right of their name.

- Manlobbi

Personal Finance Topics / Retirement Investing

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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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