Here is the story: My wife is retiring this year. I am already retired. I think we will be able to live off of muni bond income as well as 2% dividends from my taxable equity accounts. As such, I shut off dividend reinvesting in my taxable equity funds and directed these payments to a MM account.
If my muni bond income and the dividends from the equity funds are not enough to meet expenses .....I plan to sell what I need from the equity funds in taxable. This way I could also tax loss harvest to prevent capital gains in these accounts. This will also help manipulate taxable income as we will apply for an ACA health care plan this year. My question is:
Is this what the rest of you do when you shut off reinvesting the div and/or cap gain distributions in your taxable equity funds and redirect those payments to cash? If you fall short to meet expenses, do you then sell whatever else you need from those taxable equity funds and TLH in the process?
Note....this may change again when we start our pensions in a few years and find we no longer need to sell in our taxable funds to meet expenses. Thanks.
If my muni bond income and the dividends from the equity funds are not enough to meet expenses .....I plan to sell what I need from the equity funds in taxable. This way I could also tax loss harvest to prevent capital gains in these accounts. This will also help manipulate taxable income as we will apply for an ACA health care plan this year. My question is:
Is this what the rest of you do when you shut off reinvesting the div and/or cap gain distributions in your taxable equity funds and redirect those payments to cash? If you fall short to meet expenses, do you then sell whatever else you need from those taxable equity funds and TLH in the process?
Note....this may change again when we start our pensions in a few years and find we no longer need to sell in our taxable funds to meet expenses. Thanks.