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Order Of Withdrawals Suggestion

Hello - I am a (very) recently retired financial planner. I don’t know if this is possible but I would like to recommend creating a withdrawal strategy where you can opt to use cash/bonds after the market has a down year (or any period since the last up year in the S&P 500/SPY) to allow for your stocks to recover. Otherwise, if markets were up the previous year, we could draw down from stocks (or once cost basis of stocks has been recovered). This is an extremely efficient way of drawing down income in retirement while allowing your stocks to recover rather than selling shares for income when they are down. Please let me know if you would like any additional information or to discuss - it would be my pleasure to help.

17 votes

Tagged as Suggestion

Suggested 12 August 2024 by user Carl Sanger

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  • 12 August 2024 Carl Sanger suggested this task

  • 13 August 2024 Kyle Nolan approved this task

  • avatar
    Mikael Ljunggren

    +1 on this proposal. I would also like to add the possibility to configure how the withdrawals should be made: 1) percentage of a investment 2) distributing the amount over x number of years 3) what order to use/withdraw the different investments. In short it would be great if you can make the withdrawals much more flexible and configurable

    20 January 2025
  • avatar
    Cynthia S

    This would be a great way to model what you would do if there was a downturn. It mirrors real life better than what PL does now.

    19 September 2025
  • avatar
    O C

    I agree with the prior comments. I want to see a feature that lets you specify the order of withdrawals: bonds first until the bonds are exhausted, for example, then stocks, tax-deferred first, then tax-free, until those are exhausted. I believe this is the approach mentioned in one of the comments above.

    Specifically, I would love for ProjectionLab to implement the ideas laid out on this website: https://thebestthird.com. The approach is documented in a public paper: https://www.tandfonline.com/doi/full/10.1080/0015198X.2025.2541567

    02 March
  • avatar
    Joe Jette

    agree and need to be able to specify account withdrawal order

    10 April