I know this strategy has been discussed on other forums, but I'd really like the thinking of the posters here.
In January, when my personal fiscal year begins, I need to decide whether to take a "total return" approach to my portfolio or go with "yield only."
Let me elaborate. My current taxable portfolio is allocated about 55% equity funds and 45% reits and fixed income funds. ( Deferred accounts are not part of this calculation.)
My needed cash withdrawal, to supplement a fixed pension, is about $ 30,000.
A withdrawal of about 3.40% of the current total portfolio value, with all distributions reinvested, would give me the needed amount.
On the other hand, just the dividends from the reits and a high yield fund would realize about $33,000 and all equity fund assets would remain untouched.
Periodically, if necessary, I could transfer equity assets to the income side.
What do y'all think? Which alternative would you choose?
Thanks to all in advance for your input.