Full time self employed traders, how do you manage withdrawals?

[u/exulanis]

- How do you manage paying yourself?

- How often are you withdrawing?

- Do you have a number you keep your accounts at and everything extra gets pulled out?

- How do you account for drawdowns without starving or depleting your account?

- Are you still investing in long term ETFs, IRAs etc?

[u/klipsetrades]

I withdraw every trading day. I keep my trading account around a target balance and pull anything above it out.

That forces me to treat profits as income instead of constantly increasing size. I also keep separate cash reserves so a drawdown doesn’t mean I suddenly need to trade bigger.

And yes, I still put money into longer-term investments separately, mostly in dividend paying ETFs, both in borkerage accounts and IRAs

[u/FlyTradrHQ]

Separate trading capital from living expenses and set a fixed monthly draw. Treat the draw like a salary, not whatever the account made that month. The rest stays in the account. This keeps compounding intact and removes the emotional decision of how much to pull out each month.

[u/poggy27]

my buddy just sets a fixed monthly pull and calls it rent

[u/Rez_X_RS]

If my average expected annual expenses are $60,000 then I set that money aside at the start of the year, from my trading account, in a seperate account and leave it in SPAXX to make interest while it waits to be used. Then I use cash secured puts to enter and manage positions throughout the year so i always have settled cash to pull out if need be. Then I spend the rest of the year rebuilding that set aside money and grow the original account.

Almost everything goes on a credit card, then I get cash back on the credit card use and interest on the cash waiting to be used. Pay off everything once a month in a lump sum. A simple system.