urn2bfree
Full time employment: Posting here.
- Joined
- Feb 14, 2011
- Messages
- 852
I only have accumulation experience. I am wondering how people balance the use of rebalancing vs dividends and interest in creating their yearly nome.
First do you draw out what you need for a whole year all at one time and park in a bank for the year? Or do it twice ahead? Quarterly?
Second- How to deal with dividends? Our accounts currently generate 75% of what we might spend each year, but if we let them reinvest there is no trading cost generated and most of the returns n equities are made by including reinvestment of dividends. SO is it better to only partly cash out dividends or not at all and then just sell off the right mix of bonds and stock funds to make the total income and keep the AA in line? AND how often? I am not sure there even is a way to cash out only some dividends and reinvest others...
...and of course there is the question of cash reserves that has been discussed in other threads...using it as a safety net or parachute in bad times, but then how to replenish?
I would love to know real world examples from the happy with drawers out there.
First do you draw out what you need for a whole year all at one time and park in a bank for the year? Or do it twice ahead? Quarterly?
Second- How to deal with dividends? Our accounts currently generate 75% of what we might spend each year, but if we let them reinvest there is no trading cost generated and most of the returns n equities are made by including reinvestment of dividends. SO is it better to only partly cash out dividends or not at all and then just sell off the right mix of bonds and stock funds to make the total income and keep the AA in line? AND how often? I am not sure there even is a way to cash out only some dividends and reinvest others...
...and of course there is the question of cash reserves that has been discussed in other threads...using it as a safety net or parachute in bad times, but then how to replenish?
I would love to know real world examples from the happy with drawers out there.