How Could I Liquidate Some of My Self-Directed Fund

There are only two ways to extract cash from your Self-Directed Fund because most SDF are fully-vested in stocks. Cash maybe safe, but it doesn’t grow very quickly.

A common approach is to withdraw the dividend income that the stocks in the SDF earn.

If you need more cash to be withdrawn from the SDF, it would be wise to sell some or all of the lowest ranked stock even if they’re not past the SELL* threshold, which would put them in the Avoid Zone.

I had to do this when I needed cash to purchase a property. I sold the lowest ranked stock until my cash goal was achieved. Then, because this was in my IRA account and I was younger, I put the cash right back within 60 days to avoid the IRS’ premature distribution penalty.

The Buy* zone had changed in that two month period, so I purchased shares in the highest ranked companies that I did not already own, which got me right back on track with The Brockmann Method.

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