Hi, My present situation (last 15 months) has been driving me crazy. And before you ask, yes I've asked my FP and he doesn't know! Currently (past year) my distributions are half my withdrawals. That means my capital is shrinking. I can imagine this is happening to a lot of retiree's. This portfolio is rebalanced in May. I withdraw X$ every month and am payed 1.5X$ every three months. I wish to choose from two options. I realize that a lot investors don't rebalance. But I do. Please consider A. or B. A. Rebalance Yearly. Reinvest distributions quarterly. Withdraw monthly (taken evenly from each fund) B. Rebalance Yearly. Distributions sent to my bank account. Withdraw difference(living expenses) from Cash management fund. The purpose of my funds are, to support me as long as possible. I wish to spent the minimum in buy/sell costs, Tax and CG tax. I am stumped at the moment. If you can help, or need more info, Please reply. Thanks, Johny.