Now Retired: We need 3% yield on a $1.1 mil nest egg

[ERD50]

I simply don't worry about the yield of my portfolio. I picked an AA I could live with, and I withdraw needed funds annually, selling from whichever funds are highest if needed as I also rebalance. Doesn't matter a hill of beans to me if most of the withdrawn funds came from dividends accumulated during the year or came from trimming some funds.

I'd say this could be better stated as:

Doesn't matter a hill of beans [-]to me[/-] if most of the withdrawn funds came from dividends accumulated during the year or came from trimming some funds.

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It is fact. It is not opinion or a personal thing. If money is not fungible, or is only fungible to some people some of the time, there is a lot of economic theory that needs to be rewritten and re-evaluated.

-ERD50

 

[Oz investor]

I thought the idea is to not liquidate shares, to live as much as possible off the yield, correct? To avoid Sequence of Return Risk and taxes?

Got to cut the grass, will check later.

Thanks

that is the concept i am trying first up , if needed i can adjust the plan

cheers

 

[LXEX55]

Beautiful in Its Simplicity

I have Vanguard sell a certain dollar amount monthly from the fund in our portfolio that is most above it's target allocation. No buckets & no particular focus on "income" stocks for me. I'm in the "money is fungible" camp, too.

As he said in Blazing Saddles "now who could argue with THAT?". Seriously this is the cut through the clutter common sense solution that I am going to apply when I retire in December