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How to Model Selective Withdrawals
Posted: 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?
Re: How to Model Selective Withdrawals
Posted: 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.