Alex in Virginia
Recycles dryer sheets
- Joined
- Dec 23, 2012
- Messages
- 145
Over the years, I have asked 6 so-called financial advisors to poke holes in my high-yield investment approach. No poked holes, but every one has rolled his/her eyes and told me I don't really want to do what I do. What do you say?
I'm going to take the socratic approach on this thread. I'll just give you the bottom line and not bore you up front with the specifics of what and how I do what I do. Then, based on your questions or comments, I will fill in the blanks.
For almost 4 years, I have invested my IRA funds only in high-yield dividend stocks. When I started, I set a minimum of 6% yield, but in practice I have been operating on a minimum 8 - 8.5% yield for the last 3+ years. Over the last 6 months, I have begun shifting some money into bonds, but again only high yield (10% or better).
This means, of course, that starting next year (at 66), I anticipate a withdrawal rate of 8% per year from my IRA -- without touching the principal (which has doubled since March of 2009).
In all my readings, I have never heard of anyone advocating this route. I want to see if I can defend it effectively. So please take your potshot.
Thanks.
I'm going to take the socratic approach on this thread. I'll just give you the bottom line and not bore you up front with the specifics of what and how I do what I do. Then, based on your questions or comments, I will fill in the blanks.
For almost 4 years, I have invested my IRA funds only in high-yield dividend stocks. When I started, I set a minimum of 6% yield, but in practice I have been operating on a minimum 8 - 8.5% yield for the last 3+ years. Over the last 6 months, I have begun shifting some money into bonds, but again only high yield (10% or better).
This means, of course, that starting next year (at 66), I anticipate a withdrawal rate of 8% per year from my IRA -- without touching the principal (which has doubled since March of 2009).
In all my readings, I have never heard of anyone advocating this route. I want to see if I can defend it effectively. So please take your potshot.
Thanks.