Can you provide a link or more detail about where you got the your information on "rebalance" and a "proportionate" amount of each asset to produce your withdrawals?
My understanding from contacting Vanguard in 2013 is different - that even Vanguard automatic Required Minimum Distribution service withdrawals still might require considerable action by the account holder.
From my Email to Vanguard: ". . . So what happens if using Vanguard's "Proportionately" option and a fund goes below the needed amount because of MARKET CHANGES before a withdrawal is done?
For example, if one is taking RMD quarterly and a fund's value drops below its share of one's plan assets as of December 31 of the previous year, when it is time to take third quarter withdrawals what happens?
Please remember I am looking for what will happen automatically if this occurs after we are TOO OLD to notice a discrepancy or a message from Vanguard that requires some action."
From Vanguard's reply: ". . . while we have provided information on your question, we would like to caution you that as we are always looking for ways to make investing easier for our clients, the options and services we offer now may change by the time you are eligible to use our Required Minimum Distribution Service. It is also possible for RMD rules to change in the future based on IRS rules.
The options we offer for distributions that are done as a part of the Required Minimum Distribution Service are designed to determine the amounts that would be taken on the schedule you establish. Please note, the RMD amount that is calculated using the December 31 balance and the life expectancy factor for your age. If you were to choose to have the RMD taken proportionately from the funds, at the time you establish the service and then as of January 1 of each year we will review the balance in each fund to determine the amounts to withdraw for the proportional option. If you were then to make changes to the balances within the funds we would recommend having your service updated as the proportions will remain based on the January 1 calculation and not take into consideration any changes you made to the funds.
If you have concerns of being able to manager your accounts and would like to designate someone to act on your behalf, you can allow another individual to have limited or full authorization to your accounts online using either of these options: . . ."
willthrill81 wrote: ↑
Wed May 22, 2019 11:27 am
Bongleur wrote: ↑
Wed May 22, 2019 1:19 am
willthrill81 wrote: ↑
Tue May 14, 2019 4:52 pm
...I can just have Vanguard automatically sell whatever's necessary to cover my RMDs...likely let our Roth accounts ride
But who decided WHICH assets to sell? If & when to rebalance?
By my understanding, they will rebalance for you and sell a proportionate amount of each asset to produce your withdrawals. If you want to maintain a fixed AA, this is fine. If you want a dynamic AA (e.g. you don't want to sell any stocks if they're down more than 20%), then this won't work.