I take my inherited IRA RMD out in December of each year allowing it to grow
the max untaxed. I have been taking out a combination of cash and stocks
(transferring all to my non-IRA account). I have the brokerage withhold a %
when I make my RMD and am not subject to quarterly filings.
"Brent D. Gardner, ChFC" <bgardner20[at]cox.net> wrote in message
newsk8id.13407$233.9486[at]okepread05...
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======================================= MODERATOR'S COMMENT:
Please trim the post to which you are responding.

"Ollie W. Holmes" <ollie_w_holmes[at]yahoo.com> wrote in message
news:a16c4e85.0411021506.1558c24e[at]posting.google.com...
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Withdrawals will be in cash, so that doesn't matter much.

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Dollar cost averaging is a sales strategy sold to the American public by the
mutual fund industry several generations ago. It does NOT work in reverse,
at least, not to your advantage. Its better to have months, if not years,
in cash and no-volatility assets (i.e., CDs, annuities), so that you can
make periodic withdrawals without running the risk inherent with reverse
DCA.

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If you could predict the high point, you wouldn't ask the question. Since
these are tax-deferred plans, it makes no difference, really, where the
money comes from. Pick your asset allocation, update as needed, and move
money into cash long before its needed for withdrawal.

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That's what advisors are for. Or Excedrine. =)

Brent D. Gardner, ChFC
Chartered Financial Consultant
http://members.cox.net/brentdgardner1378/

"Be ever questioning. Ignorance is not bliss. It is oblivion. You don't go
to heaven if you die dumb. Become better informed. Learn from other's
mistakes. You could not live long enough to make them all yourself." - Hyman
George Rickover (1900-86), Admiral, US Navy, advocated development of
nuclear subs & ships

The Chartered Life Underwriter (CLU) and Chartered Financial Consultant
(ChFC), designations owned and exclusively offered by The American College,
signify the highest standards of academic study and professional excellence
in the financial services industry.

Realize the calculation of the required minimum distribution is based on all
your holdings, but you don't have to take it on a pro rata basis.

If you have a poorly performing fund or a rocket you can take the RMD
completely from one and avoid the other.

You would be well advised to get an independent planner and look at your
options.


"Ollie W. Holmes" <ollie_w_holmes[at]yahoo.com> wrote in message
news:a16c4e85.0411021506.1558c24e[at]posting.google.com...
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This income may trigger quarterly tax payments and , if so, I would
withdraw at the beginning of each quarter and pay the taxes at the
beginning of the next quarter.

For dollar cost averaging on a withdrawal strategy, I think you would
take out a fixed number of shares periodically, rather than a fixed
dollar amount. So you get more money when the market high.

However since it is not advisable to have money in equities which you
need in the short term, and since you have to withdraw a fixed total
dollar amount, I would not dollar cost average.

Instead I would about five years of projected withdrawals in bond and
income funds, not as sensitive to market flucations. Take quarterly
withdrawals from these funds. Rebalance your portfolio when the
market is high.

Frank


ollie_w_holmes[at]yahoo.com (Ollie W. Holmes) wrote in message news:<a16c4e85.0411021506.1558c24e[at]posting.google.com> ...

- quote -

Some recent inherited 403b, 401k, and IRA plans have forced me into
withdrawing money earlier than I would have wanted to. I do plan to
stretch it out as much as possible using life expectancy, but my
questions are:

1. Is annual withdrawal the best? If so what month? Do I wait for
annual capital gains to be distributed?

2. Is monthly withdrawal a good option? Like dollar cost averaging, it
spreads the risk of withdrawing at low tide with the benefits of
withdrawing at high tide.

3. Should I time the withdrawals myself by monitoring the chart of
each mutual fund, and aiming for the high price for the year? That
would take quite a prophet (sic) to maximize the profit.

It's nice to have money, but it also gives me a headache thinking
about managing it for best returns on a timetable.