Oh, I see. Yeah, I think it’s that simple. Turn off dividend reinvesting and transfer the proceeds to checking.
I’m firmly in the accumulation phase for my own account, so I haven’t done much planning for drawing income.
That being said, there’s also the idea of setting up a bond tent for the first few years of drawing on your investments. That’s something I’m planning to research as I get closer to my investment goals.
A lot of guidance has a gradual shift from growth stocks into value stocks (dividend paying) and bonds as you get closer to retirement and then through retirement as well. The exact mix is dependent on your income need in retirement and your risk tolerance.
Sorry, but value is overwhelmingly better than growth-weighted equities. It’s not even close. We are talking about value doing 4.4% a year better on average for the past 98 years. Nobody should weight in growth for their retirement portfolio.
And value doesn’t have anything to do with dividends. Plenty of growth stocks hand those out like candy. It’s about fundamental value versus the market value of the stock. Value weighted funds are about catching value premiums from undervalued equities. Dimensional and Avantis make their bread and butter doing that.
Dividends are frankly, a total waste of time. They come from the value of the equity. It’s not free money. The stock price is reduced to give it to you. Just sell what you need to meet your goals or go with retirement income funds which actually pay interest and still hold equities (and maybe add ultra short bond funds in if you want). That way you can control it your disbursements better.
Most TDFs are designed for those kinds of use cases for a reason.
Oh, I see. Yeah, I think it’s that simple. Turn off dividend reinvesting and transfer the proceeds to checking.
I’m firmly in the accumulation phase for my own account, so I haven’t done much planning for drawing income.
That being said, there’s also the idea of setting up a bond tent for the first few years of drawing on your investments. That’s something I’m planning to research as I get closer to my investment goals.
Hm, I’ll have to look into that last bit. I’m also still in the accumulation phase, just trying to learn more overall…
A lot of guidance has a gradual shift from growth stocks into value stocks (dividend paying) and bonds as you get closer to retirement and then through retirement as well. The exact mix is dependent on your income need in retirement and your risk tolerance.
Sorry, but value is overwhelmingly better than growth-weighted equities. It’s not even close. We are talking about value doing 4.4% a year better on average for the past 98 years. Nobody should weight in growth for their retirement portfolio.
And value doesn’t have anything to do with dividends. Plenty of growth stocks hand those out like candy. It’s about fundamental value versus the market value of the stock. Value weighted funds are about catching value premiums from undervalued equities. Dimensional and Avantis make their bread and butter doing that.
Dividends are frankly, a total waste of time. They come from the value of the equity. It’s not free money. The stock price is reduced to give it to you. Just sell what you need to meet your goals or go with retirement income funds which actually pay interest and still hold equities (and maybe add ultra short bond funds in if you want). That way you can control it your disbursements better.
Most TDFs are designed for those kinds of use cases for a reason.
Good info, thanks!