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Old 09-05-2016, 11:04 AM   #21
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Originally Posted by gayl View Post
So from what I gather you were saying, is to take the amount that I need from my investments, hold it aside in cash, and let the rest continue to grow? It's not that many months but it is disconcerting to draw out. That's why I was thinking of working one more tax season and then walking away.
That is the most predictable way to do it. You never know what may happen in the future, so selling now might best. I think quite a few people raise their cash once a year.

In general I prefer selling month by month, as needed. Over the long term that keeps just a little bit more invested. However, I'll sell early if my portfolio value is running ahead of my projections. That locks in the desired yearly portfolio gains before they can disappear in a future market decline.

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Old 09-06-2016, 08:07 AM   #22
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I agree with what HA said in the 2nd post. However, if the circumstances were such that I could not do what he suggested then the portfolio for throwing off income and having a chance of having that portfolio not be depleted would be 3 funds at 33.3% each: RVT, DNP, SDOG . These 3 funds would result in a portfolio that distribute cash at a rate of 6.3% and are the same funds, though in a different percentage as my 5% portfolio but would mean not reinvesting 20 percent of the cash received from distributions. The higher withdrawal rate increases the chance of portfolio impairment distribution reductions, however these portfolios could throw the present level of income or even higher levels for years to come, depending on the performance of the stock market over the coming years. It is a portfolio that is invested 95% stock and 5% bonds in total, so any investment that high in stock is usually more volatile. But I think that would be the highest cash spend from a portfolio that is reasonably diverse that I would be willing to take and you need the 95% stock to take such a large percentage each year from the portfolio.

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Old 09-06-2016, 10:35 AM   #23
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Originally Posted by wmc1000 View Post
What about something like closed end fund ETY? Yes they are returning a portion of capital but at approx 9%+ distributions for Forced to Retire to use it for 13 months and then sell into something else could potentially get the return needed and maintain the principal value when sold in Oct - Nov 2017. It is a 1.7 Bil fund - anyone else have thoughts on this strategy?
I recently purchased a tiny position in ETW. Here is an interesting article and discussion about Eaton Vance funds.

Originally Posted by LOL! View Post
^Sounds stupid to me. I'd rather be in control of "return of capital" for myself by choosing for myself when to sell and what to sell. That way, I can control the taxes, too, and probably not have to pay any taxes.
This is the author's reply to a question regarding RoC from a reader. " Wrong? Misguided? Well... both. But you have a lot of company. Not all return of capital is created equal.
These are option-writing funds. Option income goes into the books as RoC. It's not only not a bad thing, it's an advantage come April 15 as RoC is tax-deferred income. You pay cap gains on it when the position is sold. From my point of view, more is better."
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Old 09-06-2016, 07:11 PM   #24
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Originally Posted by Forced to Retire View Post
I am currently 60% VTI and 40% BND. I have $300K in my Fidelity Account.

I am unemployed and counting the days when I will be able to collect Social Security in October 2017.

I don't want to burn through my assets (Principal) so I was thinking about trying to live on high yield ETF's until October 2017 that pay about 10% yield. Things like Business Development Companies, Mortgage REIT's, Junk Bond Funds, etc.

Here are some options:


What do think?
I think I'd pull the cash you need to get to SS out of your portfolio and not go all in with this strategy. Now is not the time to be chasing yield. I'd suggest you look at Running Mans post and thread on his 5% portfolio for a portion of your investments. Leave the bulk of what you have where it is. Take your time and be selective some of the options you listed are highly leveraged (rates go up, their prices are going down) at least wait for a buying opportunity. PDT for example is trading at a premium to NAV, and is about 33% leveraged. Its a very good long term fund, just not at the current price. good luck.
"The four most dangerous words in investing are 'This time it's different.'" - Sir John Templeton
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Old 09-06-2016, 10:23 PM   #25
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Originally Posted by Johanson View Post
I recently purchased a tiny position in ETW. Here is an interesting article and discussion about Eaton Vance funds.

Eaton Vance Option Equity Closed End Funds: An Update | Seeking Alpha

My link didn't seem to make it into my original post.

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