RetireJapan

adamu wrote: ↑Fri Jul 17, 2020 1:07 am

fools_gold wrote: ↑Fri Jul 17, 2020 12:50 am it makes sense to start moving over to bonds within your iDeCo as this time approaches so that you don't face a big drawdown when you come to withdraw.

You mean to avoid selling stocks low? You could just buy them back immediately in a taxable account. Although with the sluggish transaction speed of iDeCo, that might be a bit risky because there could be a few weeks out of the market.

That's true. I hadn't really thought about it like that. In that case, though, by selling low and then buying back in a taxable account, you'd lose the advantage of keeping the stocks in a tax-free wrapper. On the other hand, I guess there's probably an opportunity cost to moving over to bonds...

fools_gold wrote: ↑Fri Jul 17, 2020 12:50 am

Kanto wrote: ↑Wed Jul 15, 2020 12:21 pm I do not know what this strategy would say about Bond-> stock conversation in iDeco. Or would it matter?

I think the problem is that with iDeCo you have to cash out within a certain timeframe.

This has been extended to 75 now, so should be less of a problem.