This is an odd one for me, I am a saver, not a spender. I am really good at saving money and investing it, but I get flustered when it's time to withdraw. I just need to bounce this off someone who is a little more savvy about these things than I am. I need to withdraw $5K for a one-time upcoming expense.
I was going to withdraw the $5K from my savings account since that's what it's for. But it's also making a nice 4.35% APR and I hate to reduce it too much. It has $40K in it right now and I am trying to build it up to $60K.
I also have a taxable bond fund that's supposed to balance things to keep my AA. It's lost money over the past year (past two years really). I also have a stock fund that's grown quite a bit but I don't plan to withdraw from that. The bond fund is at $69K (I opened it with $72K nearly tow years ago).
I was thinking, maybe, the best thing to do, instead of taking money out of the savings account, would be to leave the savings alone, withdraw $5K from the bond fund (and get a tax break next year for the loss), and then, after I do all that, re-balance (by moving money from my stock fund) to my correct AA. I think this will give me a slight tax break next year while keeping my investments growing. Am I being wise? Or am I missing something?
I was going to withdraw the $5K from my savings account since that's what it's for. But it's also making a nice 4.35% APR and I hate to reduce it too much. It has $40K in it right now and I am trying to build it up to $60K.
I also have a taxable bond fund that's supposed to balance things to keep my AA. It's lost money over the past year (past two years really). I also have a stock fund that's grown quite a bit but I don't plan to withdraw from that. The bond fund is at $69K (I opened it with $72K nearly tow years ago).
I was thinking, maybe, the best thing to do, instead of taking money out of the savings account, would be to leave the savings alone, withdraw $5K from the bond fund (and get a tax break next year for the loss), and then, after I do all that, re-balance (by moving money from my stock fund) to my correct AA. I think this will give me a slight tax break next year while keeping my investments growing. Am I being wise? Or am I missing something?
Statistics: Posted by Calico — Sun Jan 28, 2024 8:27 pm — Replies 3 — Views 156