Prorata TSP withdrawals


My understanding is any withdrawals from TSP (non Roth) are taken on a percentage basis from all funds. Would it make sense to take any amounts or percentage in the C fund (or S or I) and put them into a Vanguard total market fund, and leave the remainder in the G fund. The idea is that if we enter a bear market, I could take distributions only from the G fund, and alternatively when the market is up, I could take from that Vanguard fund or a mix. Any thoughts? (I understand you’re not giving me financial advice.)

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Asked on November 28, 2018 10:56 pm
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You certainly could do as you suggest. The TSP’s pro-rata withdrawal requirement also keeps participants from utilizing the so-called “bucket strategy” (where you put money for the next several years in a conservative account from which you take withdrawals, and leave the remaining money in longer-term and riskier funds.
What you suggest makes a lot of sense. I wish I had thought of it.

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Answered on November 28, 2018 11:20 pm