If there were a situation where you needed to guarantee income for someone for up to 60 years, would any of you consider the following.
Investing say 70% in very high quality companies paying at least a 2.5% dividend income with some added stable MLP's and utilities to boost up the div to at least 3.5%, and then a mix of bonds, tips, reits for the remaining 30%. The stocks would still follow an asset mix to get diversification.
Withdrawal would be in and around 2.5%, so you will still have aprox 1% to reinvest from dividends, plus any asset appreciation, to help keep up with inflation.
I am aware of companies cutting dividends during difficult times, and if that happened some drawing of principal might be necessary, but probably not as a cash reserve would also always be available say in CD's for such times. I am aware that without dividend reinvestment, your gains over all would probably lower. But understand, I am looking for a plan to try and insure income for a very long time.
Has anyone pursued this route?
Investing say 70% in very high quality companies paying at least a 2.5% dividend income with some added stable MLP's and utilities to boost up the div to at least 3.5%, and then a mix of bonds, tips, reits for the remaining 30%. The stocks would still follow an asset mix to get diversification.
Withdrawal would be in and around 2.5%, so you will still have aprox 1% to reinvest from dividends, plus any asset appreciation, to help keep up with inflation.
I am aware of companies cutting dividends during difficult times, and if that happened some drawing of principal might be necessary, but probably not as a cash reserve would also always be available say in CD's for such times. I am aware that without dividend reinvestment, your gains over all would probably lower. But understand, I am looking for a plan to try and insure income for a very long time.
Has anyone pursued this route?