I am a devout buy-n-hold, asset allocation, rebalance, low cost, diversification investor.
Here a heresy I've been casually kicking around:
Some kind of dividend strategy that produces 4% of the starting portfolio and increases by 3% per year, while also (over long time periods) maintaining a constant real capital amount. This may become easier if the stock market continues to drop and/or dividends come back into vogue. One possibility here is Wellesley or a high-dividend fund. Another possibility is a fund that sell covered calls (although I'm worried about the capital worth). The idea here is to generate living income through the dividends while not having to sell capital assests during a market downturn.
Thoughts?
Here a heresy I've been casually kicking around:
Some kind of dividend strategy that produces 4% of the starting portfolio and increases by 3% per year, while also (over long time periods) maintaining a constant real capital amount. This may become easier if the stock market continues to drop and/or dividends come back into vogue. One possibility here is Wellesley or a high-dividend fund. Another possibility is a fund that sell covered calls (although I'm worried about the capital worth). The idea here is to generate living income through the dividends while not having to sell capital assests during a market downturn.
Thoughts?