haha
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
The question about withdrawal rates started me thinking about this. I have always kept track of my cash yield on all invested assets. By this I mean the same thing as we mean by portfolio when we are using that as the denominator for our withdrawal rates.
So for example if your portfolio is $1mm and you receive cash payments of interest, dividends, partnership distributions, REIT distributions, etc. of $40,000 then your cash yield is 4%. Realized capital gains on assets including mutual funds are not included. Ordinary income on funds is included, even if it is re-invested.
Mine is right about 4%, actually 3.9%. This is accross all accounts, taxable and tax deferred, and it includes only the coupon from TIPS and I-bonds, not the increment. So it is a pretty imperfect measure, as it depends on exactly what sort of assets you hold.
My comfort would be greatest if my ordinary taxable accounts throw off enough cash to handle my spending without any need to withdraw from IRA, or to sell securities in my taxable account.
It is close, but not quite there for me.
Ha
So for example if your portfolio is $1mm and you receive cash payments of interest, dividends, partnership distributions, REIT distributions, etc. of $40,000 then your cash yield is 4%. Realized capital gains on assets including mutual funds are not included. Ordinary income on funds is included, even if it is re-invested.
Mine is right about 4%, actually 3.9%. This is accross all accounts, taxable and tax deferred, and it includes only the coupon from TIPS and I-bonds, not the increment. So it is a pretty imperfect measure, as it depends on exactly what sort of assets you hold.
My comfort would be greatest if my ordinary taxable accounts throw off enough cash to handle my spending without any need to withdraw from IRA, or to sell securities in my taxable account.
It is close, but not quite there for me.
Ha