I'll give a slightly different response than most here. We generally buy broad index funds but over the years have purchased some stocks that were dividend aristocrats. Our plan includes a variable asset allocation which is allowed to vary from 60/40 to 90/10. These individual stocks displace funds from our fixed assets however we keep at least 3 yrs of expenses in bond funds or cash to avoid selling stocks during moderate market downturns. Generally we bought these stocks when their prices were relatively low and we knew we wouldn't need to sell for many years if we didn't want to. Purchased the stocks for their relatively high dividends compared to bond funds. Over time we have been selling the stocks off if/when their prices reached high levels. Currently we are 6 years into retirement and are left with 3 stocks and 5 broad index funds. All remaining stocks are still dividend aristocrats that we plan to sell off eventually. Our spend rate has averaged 5.4% including taxes on Roth conversions .... 3.7% if those taxes are excluded. Annual rate of return since retirement has been an acceptable (to us) 5.7%. Note: portfolio YTD return this year is up to 15.8%. This is mostly due to the individual energy sector stocks coming back from their 3/20 lows. Will probably end up selling some of these this year if they go much higher.
Last edited: