Appreciate all the responses.
Portfolio is about $1.3M and does not kick off enough dividends to fund the extra expenses of about $30K/yr. For the next couple years, we are funding our excess expenses drawing down an inherited IRA. After that, we'll begin withdrawing from our taxable accounts at 2-3% WR.
We've got quite a bit of flexibility, so we can probably continue to be heavy equity focused, but thought I'd ask about options.
You have $1.3M and want to generate $30K annually (about 2.3% initial withdrawal).
Current VTSAX yield is 1.5% or so. That provides $19,500 income, and preserves the number of shares (I think this is where you are in thought). You'll have to sell shares one way or another.
You require another $11,500 annually.
a) Current VBMFX (intermediate duration bond fund) yield is 3.0% or so. $400,000 generates $12,000.
b) Current VBIRX (short duration bond fund) yield is 2.5%. $500,000 generates $12,500.
c) Current VBLAX (long duration bond fund) yield is just under 5.0%. $250,000 generates $12,500.
The yields, dividends, and NAV's do fluctuate. Also, you need to project how taxes will affect your investment returns. Do you file your own taxes each year?
There's a thread on individual bonds. That will inform you to a greater extent about a non-fund solution.
Also consider some CD laddering.