marko
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Mar 16, 2011
- Messages
- 8,426
I'm sure a piece of this has been covered in some thread but this might be a different sort of question I need help with.
1) I'm a dyed in the wool "never touch the principal" guy
2) My 40/60 portfolio is currently paying all the bills nicely (for now)
3) Common sense/'good-but-not great' performance/advisors/calculators all tell me that I should return to a 60/40 portfolio (I'm 62 yo)
4) A 60/40 would not pay the bills and would require that I back-fill with sales of equity shares, however it has the chance to improve the growth of the overall value of the portfolio.
My problem is that the idea of selling stock shares (even if they gain a higher return) is freaking me out!
I'm trying to wrap my head around the idea of selling shares which I view as a finite, non-renewable resource vs taking dividends/interest which I view as 'unlimited supply'. If I sell shares, they're gone forever but dividends pay me and my net worth isn't being slowly depleted.
Yes, I realize the pie has the opportunity to grow bigger in a 60/40 but the number of shares doesn't grow, only their value. Again, once the shares are gone, they're gone.
So, can someone steer me out of my weird mindset? How can I look at this differently? What am I missing?
1) I'm a dyed in the wool "never touch the principal" guy
2) My 40/60 portfolio is currently paying all the bills nicely (for now)
3) Common sense/'good-but-not great' performance/advisors/calculators all tell me that I should return to a 60/40 portfolio (I'm 62 yo)
4) A 60/40 would not pay the bills and would require that I back-fill with sales of equity shares, however it has the chance to improve the growth of the overall value of the portfolio.
My problem is that the idea of selling stock shares (even if they gain a higher return) is freaking me out!
I'm trying to wrap my head around the idea of selling shares which I view as a finite, non-renewable resource vs taking dividends/interest which I view as 'unlimited supply'. If I sell shares, they're gone forever but dividends pay me and my net worth isn't being slowly depleted.
Yes, I realize the pie has the opportunity to grow bigger in a 60/40 but the number of shares doesn't grow, only their value. Again, once the shares are gone, they're gone.
So, can someone steer me out of my weird mindset? How can I look at this differently? What am I missing?