How to Model Selective Withdrawals

The planner offers plenty of flexibility and can handle many complicated real-world scenarios, but sometimes it can be tough to figure out how to do it. Check out this forum for discussion of how to model things like selling a house, long-term care expenses, and much more.
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mountainsoft
Posts: 34
Joined: Sun Jan 22, 2017 8:34 pm

How to Model Selective Withdrawals

Post by mountainsoft » Sun Nov 17, 2019 8:00 pm

Let's say I have 60% of my portfolio in stocks (maybe VTSAX) and 40% in bonds (VBTLX). Is there a way to model selling only the bonds when the stock market has a major decline? Then rebalance when the market recovers?

jimr
Posts: 524
Joined: Thu Feb 28, 2008 6:48 pm

Re: How to Model Selective Withdrawals

Post by jimr » Sun Nov 17, 2019 8:31 pm

I can't think of a simple way to do this. The simulation engine doesn't know about/understand asset allocation. It just takes a return and standard deviation as inputs. Also, there's no way to dynamically adjust the return/std deviation based on a market crash.

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