@article{hughenWithdrawalPatternsRebalancing2002,
  title = {Withdrawal {{Patterns}} and {{Rebalancing Costs}} for {{Taxable Portfolios}}},
  author = {Hughen, J Christopher and Laatsch, Francis E and Klein, Daniel P},
  year = 2002,
  journal = {Financial Services Review},
  volume = {11},
  number = {4},
  pages = {341--366},
  publisher = {Academy of Financial Services},
  address = {Atlanta},
  issn = {10570810},
  abstract = {This article quantifies the effect of taxes on the magnitude and variability of cash flows from taxable retirement portfolios. While previous research focuses on pretax cash flows, this paper includes taxes associated with rebalancing and withdrawals. We incorporate the differential tax treatment of interest income and capital gains. Taxes have dramatic effects on the size and variability of the after-tax cash flows withdrawn from the portfolio. Financial planners may use our results to determine the ideal equity allocation in taxable retirement portfolios. For withdrawals below 5\% and above 8\% of initial portfolio value, our results suggest that the 100\% equity allocation generally provides the most attractive trade-off between risk and return during the retirement period. Even for withdrawals (as a percentage of initial portfolio value) from 5\% to 8\%, the 100\% equity allocation is an attractive choice because it has substantially higher mean terminal value and similarly higher mean after-tax cash flows. An analysis of inflation-adjusted withdrawal amounts also strongly favors the 100\% equity allocation.},
  langid = {english},
  keywords = {3400:Investment analysis & personal finance,4230:Personal taxation,52394:Portfolio Management and Investment Advice,9130:Experiment/theoretical treatment,9190:United States,Asset allocation,Business And Economics--Banking And Finance,Capital gains,Costs,Equity,Financial planners,Government bonds,Investments,Investors,Portfolio,Portfolio management,Rates of return,Research,Retirees,Retirement,Retirement income,Retirement planning,Statistical analysis,Stocks,Studies,Success,Tax rates,Taxes,United States--US,Withdrawals}
}