R
Richard Treston
Guest
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.
Rich
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.
Rich