Critical Mass - Care and Feeding For Once Attained: Dynamic Buckets Distribution

» bob90245 - Dynamic Buckets Distribution

In response to message posted by bob90245:

O.K. here's another brainstorm. How about combining 3 strategies? I will call it the Dynamic Buckets Distribution system. We'll start with the following asset allocation:

10% Cash
30% Total Bond Index fund
10% Large Growth
10% Large Value
10% Small Growth
10% Small Value
10% REIT Index fund
10% International

Assuming a 4% annual withdrawal rate, around 2% can come from dividend distributions. We won't be re-investing them. For those stock funds that show a gain for the year, take profits. If the gains are large, don't spend more than the other 2%. Stash the rest in cash. If the gains are small, then take what you can get. And then dip into cash for the rest.

I like this strategy the best so far. By slicing your stock funds into separate categories, there should be 1 or more funds giving you opportunities to take profits every year.

-- posted by bob90245