# How to learn best way to take money out of investments?



## HoneyNut (Jan 18, 2021)

I really hope to retire later this year (though still swinging back and forth between "no, I need a little more saved first" and "woo-hoo I'm going to just jump").  
I need to learn the nuts and bolts of how a person removes money from investments/IRAs to live off of.  Like do I sell a little each month and save part toward property taxes, or do I only sell enough to make ends meet and wait until property taxes are due to sell a lump?   Will the investment company (I use Fidelity) have any feature that makes the best choice of what to sell?   Somehow for the inherited IRA from my mom, the RMD just gets disbursed every December without me needing to choose anything to sell, so I'm hoping there is a feature like that for everything.
Also, the little inherited IRA keeps growing even though I get the RMD each year (except 2020 that I chose the 'skip' option that Covid relief gave), and I am worried that my mom's money is invested well but maybe mine is invested poorly and will just shrink-shrink-shrink.  But I don't know if it is feasible to sell out of bad stuff and buy good stuff because maybe then I'd have to pay a lot of gains taxes.   I really am clueless on this.   
Can anyone explain what they do and/or recommend some easy books or past threads about this?   I started to look at the early retirement forums to research but got so depressed that everyone there is rich, has millions, and retires decades early.   I need advice for poor barely will squeak by type retirement planning.


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## bowmore (Jan 18, 2021)

I would suggest you post this question on the website early-retirement.org. There are a great number of very savvy people who can give you intelligent answers to your question.
I retired at 70, and do not have "millions", but still find a lot of help there.
There are so many variables that you would have to explain to get some good advice.
1. How old are you
2. How much will you get from SS, and when to take it
3. Do you have a pension
4 What are your yearly expenses
5. What kinds of investments do you have and what is in the inherited IRA


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## Pecos (Jan 18, 2021)

We put about 90% of our IRA holdings into large balanced funds (Fidelity Balanced and Vanguard Star), then I set up regular monthly withdrawals so that the total will meet our RMD. We don't bother trying figure out which individual stocks or sectors should be sold first. We leave that up to the professionals. Taking out monthly payments (Dollar cost averaging) is generally regarded as a safer option than trying to time the market.

Our IRA's have continued to grow despite our withdrawals, but when I checked our 2021 RMD at both Vanguard and Fidelity I find that the percentage that I (at 78) must withdraw is growing fairly rapidly.


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## tbeltrans (Jan 18, 2021)

I would not look to a forum for financial or medical advice.  I mention both of these because they are too important, and bad advice too potentially devastating, to trust people you don't REALLY know for this information.  Unfortunately, on a forum, anybody can be whatever or whoever they want with the anonymity of sitting safely somewhere behind a keyboard, even if we want to feel that we truly know them.  People will post sounding like real experts, but you have no means of checking this.  Instead, I would ask people you know and trust for recommendations as to whom, and what resources, to trust.  Also, everybody's financial situation is different, so what worked for one person, may not at all be suitable for another.

Tony


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## garyt1957 (Jan 26, 2021)

If you're with Fidelity you can set up a free meeting with a rep who will help you answer many of these questions, assuming you have a Fidelity office near you.


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## Chet (Jan 26, 2021)

You should start with knowing how much you need per week to lead your current lifestyle. That's what I did. All my expenditures were by cash, credit card, or check. Once a week I put $100 in my wallet. At the end of the week I wrote down what I had spent. I did the same with checking and credit. After years of doing that I knew what I needed and planned from there.


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## J.B Books (Jan 26, 2021)

I agree with Tony.

I give financial advice everyday. That's what I do.

I would NEVER give advice on a public forum.

Anybody that does, don't listen to them.

I don't know you. I don't want to know you (professionally)

Talk to a professional that has no skin in the game. What I mean by that don't talk to anybody that recommends his own products or services. He/she makes money on those products and does not have your best interest in mind.

Ask the person if they are acting as a fiduciary.

Fidelity has fee based services and non fee services. I like Fidelity.

Don't ask me for advice because I won't give it to you.

I don't want to sound harsh but I am trying to help you believe it or not.


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## OneEyedDiva (Jan 26, 2021)

There are many articles to be found on this subject.  Here are two of them. The first lists and expounds on the steps below. The second article lists the sequence you should follow when withdrawing assets in order to be most tax efficient. 

        Create a floor

Bucket your money.
Minimize mandatory distributions.
Make systematic withdrawals.
Use account sequencing.
https://money.usnews.com/money/retirement/articles/retirement-distribution-strategies-that-will-make-your-money-last#:~:text=5 Retirement Distribution Strategies That Will Make Your,Systematic Withdrawals. 5 Use Account Sequencing. More items
https://retiremitten.com/retirement-withdrawal-strategy-which-accounts-first/


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## fmdog44 (Jan 30, 2021)

Having money and not knowing what to do with it is close to not having any. Consider a CFP, *Certified* Financial Planner. It will cost you but you are spending money to make money. get references before you sign on. I use Vanguard for a part of my portfolio and they will advise if you have the minimum amount required.


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