Retiree’s use Track My Portfolios to track and cash-out rebalance their portfolios.

Richard and Connie are retirees, in their early seventies and required to take distributions from their IRA’s. They both have IRA’s and share an investment account. All assets except for cash are in mutual funds.

Their challenge is much different from those who are actively saving. They must have cash on hand to help support themselves in addition to adhering required minimum distributions (RMD) to comply with regulations. Therefore, they must insure their RMD’s do not invoke trades at the wrong time.

To start, it is important to understand their strategy for funding their expenses. Within their retirement portfolios, they have cash equivalent assets to hold approximately three years of anticipated expenses, net of social security income. For tracking purposes, their asset allocations include everything except for this cash because every cash drawdown would potentially prompt a rebalance.

Each year, they assess their portfolio performance and cash-out rebalance if returns were positive. Otherwise, they defer until conditions improve and instead rely on the cash equivalent assets within their IRA’s. This makes perfect sense because they may never need to sell during a market downturn.

Their strategy pays off because they control when to cash-out rebalance, selling in up markets and deferring cash replenishment until market conditions improve.

Track My Portfolios not only helps with portfolio management, but provides a valuable cash-out rebalancing tool, easing the cumbersome trade calculations required to meet their goals and for these retirees, fewer investment decisions and ease of asset management makes all the difference.

Richard and Connie use Track My Portfolios to help manage their retirement income through cash-out rebalancing, while also restoring their asset allocations to their original percentages, reducing risk.