Andre1969
Thinks s/he gets paid by the post
Hey gang, I have a question, that I've never really thought about before. How do dividends factor into the SWR. Right now, I'm still some years away from retiring, so I'm reinvesting all of my dividends.
But, when I retire, let's say I have $1M, and want a 3% SWR. That's $30K per year. But, say the portfolio pays out 30,000 per year in dividends.
If I just live off those dividends, is that still considered taking the 3%, or would it be taking 0%?
But, when I retire, let's say I have $1M, and want a 3% SWR. That's $30K per year. But, say the portfolio pays out 30,000 per year in dividends.
If I just live off those dividends, is that still considered taking the 3%, or would it be taking 0%?