I have a substantial dividend-paying position, but it is not in an IRA. Studies have shown that over the long term dividend paying stocks provide the greatest total return, so it would make sense to have them in your IRA as well. You want stocks in the second quintile of dividend returns - the ones that pay more are mostly very risky.
I have two inherited IRAs, a regular one and a Roth. I take the required distributions every year, and withhold the entire amount for taxes. I also withhold 22% from my SS, and I usually have a carryforward at the IRS from the prior year. If necessary, I will take slightly more than the required distribution. Starting in 2026, I will have to take RMDs from my own IRA. I plan on withholding 40% for Federal tax and 10% for state tax. I may still have to withhold some percentage of my inherited IRAs. PS. I usually take the distributions in December, so I can earn interest on the money all year.
If you define timing the market as saying when the crash will occur, then you are correct. But there is nothing wrong with saying a crash is probably coming, but we don't know when. History has shown that this will happen. The problem is, the market can stay crazy longer than you can stay solvent.
I continue to use my brain. The 10K report of every stock you can invest in is available online, and the conference call transcripts are widely available. This is the golden age of investment information, so why not take advantage of it?
"If you only buy stocks when they’re cheap,” Ritholtz says, “you get these narrow windows every decade or so.” The solution? Investors should simply dollar-cost average over time and take the long view. There's nothing wrong with only buying every decade or so. You just have to know what price you are willing to pay, and be sure to buy when the stock hits your target.
That would depend on how high your income was and how much you were saving. If you were making $500K, and saving $200K, you could probably live pretty easily on $350K. But if you were making $100K and saving $10K, then you might get into trouble. However, if you stop saving, no longer have to pay FICA, and get favorable tax treatment on your retirement income, you will probably close to even.
Yes, a brilliant idea.
"We need money to pay Social Security benefits - where can we get it?"
"I know, let's tax Social Security benefits so we can continue for pay those benefits."
I am primarily an investor, but I have done a few trades. If you do a trade, you have to be disciplined and exit the position whether you win or lose. If you let a trade turn into an investment, you will lose for sure. My trades were utility-merger arbitrage.
If you own individual stocks and bonds, it's pretty easy to do projections. You know what dividends and interest are coming in, and the payment dates. The only doubt is how much the money market fund will pay, but you know about what that will be.
Comments
I have a substantial dividend-paying position, but it is not in an IRA. Studies have shown that over the long term dividend paying stocks provide the greatest total return, so it would make sense to have them in your IRA as well. You want stocks in the second quintile of dividend returns - the ones that pay more are mostly very risky.
Post: Are You an Entirely Dividend Investor in Retirement?
Link to comment from October 15, 2025
I have two inherited IRAs, a regular one and a Roth. I take the required distributions every year, and withhold the entire amount for taxes. I also withhold 22% from my SS, and I usually have a carryforward at the IRS from the prior year. If necessary, I will take slightly more than the required distribution. Starting in 2026, I will have to take RMDs from my own IRA. I plan on withholding 40% for Federal tax and 10% for state tax. I may still have to withhold some percentage of my inherited IRAs. PS. I usually take the distributions in December, so I can earn interest on the money all year.
Post: How do you pay income tax withholding in retirement?
Link to comment from October 15, 2025
If you define timing the market as saying when the crash will occur, then you are correct. But there is nothing wrong with saying a crash is probably coming, but we don't know when. History has shown that this will happen. The problem is, the market can stay crazy longer than you can stay solvent.
Post: That Dumb Stock Market
Link to comment from October 14, 2025
Is that the one where the stock price has a 10/1 ratio to the bitcoin they actually hold?
Post: That Dumb Stock Market
Link to comment from October 11, 2025
I continue to use my brain. The 10K report of every stock you can invest in is available online, and the conference call transcripts are widely available. This is the golden age of investment information, so why not take advantage of it?
Post: That Dumb Stock Market
Link to comment from October 11, 2025
"If you only buy stocks when they’re cheap,” Ritholtz says, “you get these narrow windows every decade or so.” The solution? Investors should simply dollar-cost average over time and take the long view. There's nothing wrong with only buying every decade or so. You just have to know what price you are willing to pay, and be sure to buy when the stock hits your target.
Post: How Not To Invest
Link to comment from October 11, 2025
That would depend on how high your income was and how much you were saving. If you were making $500K, and saving $200K, you could probably live pretty easily on $350K. But if you were making $100K and saving $10K, then you might get into trouble. However, if you stop saving, no longer have to pay FICA, and get favorable tax treatment on your retirement income, you will probably close to even.
Post: Retirement Income Goals: Bottom Up Beats Top-Down
Link to comment from October 10, 2025
Yes, a brilliant idea. "We need money to pay Social Security benefits - where can we get it?" "I know, let's tax Social Security benefits so we can continue for pay those benefits."
Post: Taxpayers Say the Darndest Things
Link to comment from October 7, 2025
I am primarily an investor, but I have done a few trades. If you do a trade, you have to be disciplined and exit the position whether you win or lose. If you let a trade turn into an investment, you will lose for sure. My trades were utility-merger arbitrage.
Post: Are You a Trader or an Investor?
Link to comment from October 7, 2025
If you own individual stocks and bonds, it's pretty easy to do projections. You know what dividends and interest are coming in, and the payment dates. The only doubt is how much the money market fund will pay, but you know about what that will be.
Post: Spreadsheets: A Luddite’s Necessary Inconvenience?
Link to comment from October 4, 2025