Which funds to choose from for an IRA monthly distribution?
Is there any reason to choose specific type funds (bond, equity, cash, etc) to have my monthly IRA distribution taken from. Or can it just be divided equally among all my 8 funds?
Thank you.
Don
Permalink Submitted by Alan Spross on Sat, 2008-08-09 23:38
There is no right or wrong answer to this as long as you are not paying any early redemption fees for selling shares to fund your distribution.
If re balancing your investments were integrated into this process, you would probably just take the distributions from funds that exceeded your asset allocation strategy. This would enable the funds that have yet to gain to remain as is as you would be selling the gainers and retaining the ones that have been more out of favor.