New retiree here and I’m still working through my decumulation strategy.
I haven’t nor plan to use PE for asset allocation purposes but will likely use to guide my withdrawal approach.
I have a 20 year TIPS ladder in my tIRA to cover a portion of my expense needs. Each year as the TIPS mature (and shed interest), I need to decide if I take a the tIRA distribution vs taking same amount from taxable.
If PE is still high, I may take from taxable and only incur LTCG for stock portion vs Income Tax for a tIRA distribution (I’d plan to reinvest the TIPS principal/interest to match AA of what I took from taxable). This will also help to reduce taxable income and let me increase Roth conversions.
If PE took a nose dive (e.g., >20% decline from highs), I may take tIRA distributions for some time to weather the market downturn and minimize my stock sales.
Anyone see issues with this?
I haven’t nor plan to use PE for asset allocation purposes but will likely use to guide my withdrawal approach.
I have a 20 year TIPS ladder in my tIRA to cover a portion of my expense needs. Each year as the TIPS mature (and shed interest), I need to decide if I take a the tIRA distribution vs taking same amount from taxable.
If PE is still high, I may take from taxable and only incur LTCG for stock portion vs Income Tax for a tIRA distribution (I’d plan to reinvest the TIPS principal/interest to match AA of what I took from taxable). This will also help to reduce taxable income and let me increase Roth conversions.
If PE took a nose dive (e.g., >20% decline from highs), I may take tIRA distributions for some time to weather the market downturn and minimize my stock sales.
Anyone see issues with this?
Statistics: Posted by TryingMyBest1963 — Mon Aug 25, 2025 8:59 am — Replies 18 — Views 1517