Dividend Yield vs Total Return Income in Retirement

[marko]

From a tax perspective, when you withdraw from the "cash bucket", is it considered long term capital gains or taxed at ordinary income?

Its taxed as an IRA distribution. Ordinary income. Doesn't matter where it came from.

 

[Gumby]

Will MO survive till the OP reaches 90?

I don't know, and it doesn't really matter. It's just an illustration of the concept that you don't necessarily have to sell shares to make your RMDs if you have a high enough dividend payer in your tIRA.

 

[Dash man]

I don't know, and it doesn't really matter. It's just an illustration of the concept that you don't necessarily have to sell shares to make your RMDs if you have a high enough dividend payer in your tIRA.

My tIRA has MAIN in it paying a good dividend. It’s going to be my charitable giving account via QCDs in four years. It’s already paying more than my RMDs will likely be.

 

[corn18]

I don't know, and it doesn't really matter. It's just an illustration of the concept that you don't necessarily have to sell shares to make your RMDs if you have a high enough dividend payer in your tIRA.

But it is a good reason not to go all MO.