Bonds vs Dividend stocks

[wallygator69]

Hi Folks,

Learning lots, thanks.

Close to giving my FA the boot due to fees and expenses.

Hypothetical close to my situation.

42 years old, No Debt, house paid want to take about $48k per year in retirement. Having a fit with SWR, allocation, buckets, risk, rewards. All the stuff you guys seem to have over come.

The more I read the more my head wants to explode.

Taxable Accounts
$200K Various Bond Funds
$500k Various Stock Funds

Tax deferred (IRA's ROth SEP SIMPLE 401K)
$400k stock mutual funds
$50k Individual stocks
100k bond funds

The Bond funds in the taxable account have obvously done zero for 3 plus years.

I can only sell these in the taxable account without kicking of cap gains.

Any thoughts on the plus and minus's of selling them and buying $200k of DVY or the like or possible bunch of different Dividend yielding stocks. Pick cream of the crop and get 5% dividend and hopefully some growth?

Pro's cons has anyone done this?

Thanks,

Wally

 

[cute fuzzy bunny]

You're going to buy a lot more volatility, but with better historic long term growth. Maybe that continues into the future. The tax treatment for qualified stock dividends is tough to beat compared to bonds, especially if you're in an upper bracket.