Rules for paying Me,Myself and I , from ret port

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Paulie
Posts: 78
Joined: Thu Mar 27, 2008 12:51 pm

Rules for paying Me,Myself and I , from ret port

Post by Paulie »

OK after TMI,much vacillation, and decision making I have chosen my AA.(Target Inc,wells and interm term bnd)
I have chosen to DCA(my comfort level) into a tax deferred portfolio and plan to be fully funded by 3/2013.
Now and for a few more yrs I will be reinvesting div and cap gains while monitoring performance
When and if I do need to pull from this how does one go about it.
Do you turn reinvesting on and off as needed,leave it off,send div/caps to a sht term money fund and rebal 1 or 2 times a year?
Are there any rules or Is it purely a personal pref.
I cant find any info on this here or else where.
Any reading recommends would be appreicated.
Last edited by Paulie on Mon Aug 13, 2012 10:03 am, edited 1 time in total.
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englishgirl
Posts: 2508
Joined: Thu Mar 01, 2007 4:34 pm
Location: FL

Re: Rules for paying ME from ret port

Post by englishgirl »

What is ME?

The first thing that sprang to mind was medical expenses, but that doesn't seem to fit with the rest of your post.
Sarah
dailybagel
Posts: 553
Joined: Tue Feb 15, 2011 7:35 pm

Re: Rules for paying ME from ret port

Post by dailybagel »

Is this a taxable or tax-deferred (401k, IRA, etc) account?

If taxable, I would search for strategies about directing dividends to a money-market account. This is done for convenience, and to simplify costs-basis matters in taxable. That is, so that there is one purchase per year, rather than 12 small purchases for funds that pay monthly.

You can search for "DRIP," an old-fashioned word for dividend re-investment plan.

EDIT: I think "ME" is the pronoun. "Myself."
dailybagel
Posts: 553
Joined: Tue Feb 15, 2011 7:35 pm

Re: Rules for paying ME from ret port

Post by dailybagel »

I looked for a Wiki entry on withdrawal. There is a lot of information on withdrawal strategies, but none that I saw about withdrawal mechanics. Maybe that would be a useful, and pretty short, Wiki page?
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englishgirl
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Location: FL

Re: Rules for paying ME from ret port

Post by englishgirl »

Oh, "me". That makes more sense. I am easily confused!

There are no rules as far as I know. My plan is to open a money market account, and have all interest and dividends deposited into there automatically. And I'll probably keep at least a year's worth of expenses in there at a time - choosing where to pull that money from based on what has been performing well, what needs required minimum distributions, and all that. Kind of like rebalancing in reverse - instead of buying and selling to rebalance, or putting new money into the lesser performing asset, you just sell from the better performing asset. And then I'll transfer from the money market account to checking periodically.
Sarah
YDNAL
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Location: Biscayne Bay

Re: Rules for paying Me,Myself and I , from ret port

Post by YDNAL »

Paulie wrote:I have chosen to DCA(my comfort level) into a tax deferred portfolio and plan to be fully funded by 3/2013.
Now and for a few more yrs I will be reinvesting div and cap gains while monitoring performance
When and if I do need to pull from this how does one go about it.
Do you turn reinvesting on and off as needed,leave it off,send div/caps to a sht term money fund and rebal 1 or 2 times a year?
OK, this is a tax deferred portfolio - so no immediate tax consequences and no Roth.

I suggest you "pull" from outperforming Funds - this helps rebalance - then proportionately pull from all Funds to maintain the AA you want.
Landy | Be yourself, everyone else is already taken -- Oscar Wilde
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