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Old 01-18-2015, 12:14 PM   #41
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I have no clue what my yield is - never checked.


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Old 01-18-2015, 12:34 PM   #42
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VTSAX 62% TTM 1.76%
VTIAX. 10% TTM 3.40%
VBTLX 10% TTM 2.255%
SV cash 28% approximately 2.25%

My math teacher always said I'd have a reason to remember those formulas that would help me figure out the overall average. If he weren't dead, I'd tell him he was finally right.

So I guess about 2%... Maybe a little more.


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Old 01-19-2015, 08:33 AM   #43
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Thanks for everyone's feedback. Sounds like a wide variety of strategies to produce income. Since I'm reluctant to invest a lot in junk bonds, don't have the time or inclination to become a landlord, sounds like I'll remain in the ~2% range with my 60/40% stock/bond allocation.
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Old 01-19-2015, 06:12 PM   #44
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Just because of you're income comment, I'm not income oriented. That's why I've never checked my yield. Total value/total return is all I concern myself with


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Old 01-19-2015, 08:12 PM   #45
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I'm trying to get an idea of what a reasonable "yield" is on my investment portfolio. By that I mean income (dividend & interest) over value (not yield on cost) of your overall investment portfolio (which for me excludes emergency cash and checking account balance). Last year my yield was just below 2%. That sounds reasonable to me because I am still 10 years from our FIRE goal and I am 70/30 stocks/fixed income. I have no particular focus on dividend stocks or high income investments.

In the future, I would like to get more income from our portfolio, so I'm curious what other people have been able to achieve.
Never thought to calculate the number until you mentioned.

We are at 2.5% yield.

I looked up each fund's yield on Yahoo. Then weighted that with each fund's allocation in the portfolio. Added the results, and there you have it. Can't speak to whether that is reasonable, unreasonable, or what. The holdings are broad-based index funds.

In another stock and ETF portfolio I take care of, the yield is 3.8%. That is a mixture of stocks (telecommunications, utilities, energy), REITs, bond funds, etc.
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Old 01-19-2015, 08:17 PM   #46
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Originally Posted by seraphim View Post
VTSAX 62% TTM 1.76%
VTIAX. 10% TTM 3.40%
VBTLX 10% TTM 2.255%
SV cash 28% approximately 2.25%

My math teacher always said I'd have a reason to remember those formulas that would help me figure out the overall average. If he weren't dead, I'd tell him he was finally right.

So I guess about 2%... Maybe a little more.
Simple to calculate a simple portfolio like that. I get 2.2862%.
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Old 01-20-2015, 09:04 AM   #47
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Thanks to both mathjak and mrfeh (and others) for their comments. Good points re: dividends. I am still trying to get into the mode of thinking about my "decumulation" phase in 10 years. I avoid high dividend stocks for the reasons you both mentioned. So essentially, what you are saying is that there is no investment portfolio that mitigates against sequence of returns risk (except for simply minimizing equity investments). The only way to mitigate the SOR risk is to get lucky as to when my first year of retirement occurs and/or be able to cut spending in negative return years.

I have been reading about "income floors" using risk-free investments (ha!) to provide "guaranteed" income to cover the absolute essential expenses. In my case, my wife and I should have a decent pension, which would serve this purpose. Sounds like the best approach may be the simple strategy of a (i) low-cost Boglehead diversified portfolio with (ii) a conservative but dynamic withdrawal plan (which to me means a lot less than 4% generally and even less in years when the market tanks). My wife wants a nice cushion in our plan and a reasonable chance of leaving a modest inheritance to our kids/grandkids.
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Old 01-20-2015, 09:08 AM   #48
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Thanks to both mathjak and mrfeh (and others) for their comments. Good points re: dividends. I am still trying to get into the mode of thinking about my "decumulation" phase in 10 years. I avoid high dividend stocks for the reasons you both mentioned. So essentially, what you are saying is that there is no investment portfolio that mitigates against sequence of returns risk (except for simply minimizing equity investments). The only way to mitigate the SOR risk is to get lucky as to when my first year of retirement occurs and/or be able to cut spending in negative return years.

I have been reading about "income floors" using risk-free investments (ha!) to provide "guaranteed" income to cover the absolute essential expenses. In my case, my wife and I should have a decent pension, which would serve this purpose. Sounds like the best approach may be the simple strategy of a (i) low-cost Boglehead diversified portfolio with (ii) a conservative but dynamic withdrawal plan (which to me means a lot less than 4% generally and even less in years when the market tanks). My wife wants a nice cushion in our plan and a reasonable chance of leaving a modest inheritance to our kids/grandkids.
Yup, I agree with what you've written here. Folks don't like to admit it, but luck can play a significant role in the success of a retirement plan.

Another option you haven't mentioned above would be an SPIA, if you really want to avoid SOR risk. Might want to read Unveiling the Retirement Myth by Jim Otar for more info.
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Old 01-20-2015, 09:13 AM   #49
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Yup, I agree with what you've written here. Folks don't like to admit it, but luck can play a significant role in the success of a retirement plan.

Another option you haven't mentioned above would be an SPIA, if you really want to avoid SOR risk. Might want to read Unveiling the Retirement Myth by Jim Otar for more info.
In theory, I agree about the SPIA. For us, however, my wife's pension should serve in place of the annuity, as long as it remains healthy.
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