We use a combination of withdrawing an amount that doesn't exceed our average earned dividends and interest and a "fake RMD". I have tracked this dividend and interest number monthly for two years before I retired in 2021. We then "tweaked" the IRS RMD chart to start at 65 and withdraw that calculated amount (not to exceed our earned dividends and interest). So far we have not had to sell one share of our equities so our dividend motor keeps humming along and we sleep very well at night.
We have both ETF and CEF option funds that pretty much cover the various equity markets. I believe we have had them for 3+ years now. As with stocks (I know you know), there have been good periods as well as bad. And specifically with options, there are proper times to buy/write them. Anyway, we are up 15.6% with a yield of 7.95%. Expenses come in at 0.96 due to the CEFs but this small portion of our portfolio is just a little nitro added to the fuel tank so I'm OK with it.
My grandfather, a former commercial photographer, was suffering from macula degeneration. Due to his terrible vision, he would simply "OK" whatever his stock broker called about. One day my Mom (a Boglehead before we were Bogleheads) was going through his statements and discovered the churning this broker had been doing. Investing shouldn't be complicated and neither should the tax code.
"Money is the root of all evil" No sorry. That is the often misquoted version. Here is the real quote: "For the love of money is a root of all kinds of evils. It is through this craving that some have wandered away from the faith and pierced themselves with many pangs." 1 Timothy 6:10English Standard Version
We desperately want to give to our children as well as some charities now. The dilemma is ensuring we have enough left for our future (we are 68 and 66), dealing with tax rates and IRMAA cliffs, as well as rationalizing starting SS now vs 70 to help with this giving and the associated torpedo coming from that IRS office. And let's not forget the RMDs and the need to reduce their impact by reducing/draining/converting IRAs....I'm a wicked smaaht guy(MA thing) but this makes my head hurt.
Build your own ETF of Dividend Growth Stocks that have raised their dividend at least 25 years (aka Dividend Champions). Reinvest the dividends until retirement and then harvest the dividends. We have been retired 3 years now and have not "sold" a single share. YMMV
Yes and no. There is the "belonging to the team (family)" aspect of chores that reflects pulling your weight and contributing to the team's purpose, survival, etc. And then there is the financial life lesson of working hard, doing a good job, and being rewarded for your efforts. Both are critical to a child's upbringing.
I used to get teased by our family that I suffered from "the paralysis of analysis." Now I consider it a strength (and money saver!). Before any big purchase I do exhaustive research...and then put it away for a few days. If I still like the decision I'll go for it. Often, the "desire" fades and I've saved considerably.
#5: https://opensocialsecurity.com/ can be used (free) to better gauge this decision. Plus you can play with different filing time frames at the bottom of the page. We have decided to have my better half start at her normal retirement age (which allows her to keep working without sacrificing SS benefits) while I wait until 70 (to maximize her survivor benefit).
Comments
We use a combination of withdrawing an amount that doesn't exceed our average earned dividends and interest and a "fake RMD". I have tracked this dividend and interest number monthly for two years before I retired in 2021. We then "tweaked" the IRS RMD chart to start at 65 and withdraw that calculated amount (not to exceed our earned dividends and interest). So far we have not had to sell one share of our equities so our dividend motor keeps humming along and we sleep very well at night.
Post: Spending It
Link to comment from January 11, 2025
I thought "we" had put this to bed... I'll let Nick Maggiulli https://ofdollarsanddata.com/dollar-cost-averaging-vs-lump-sum/
Post: Dollar Averaging by Jonathan Clements
Link to comment from October 12, 2024
We have both ETF and CEF option funds that pretty much cover the various equity markets. I believe we have had them for 3+ years now. As with stocks (I know you know), there have been good periods as well as bad. And specifically with options, there are proper times to buy/write them. Anyway, we are up 15.6% with a yield of 7.95%. Expenses come in at 0.96 due to the CEFs but this small portion of our portfolio is just a little nitro added to the fuel tank so I'm OK with it.
Post: A Foolish Option
Link to comment from August 24, 2024
My grandfather, a former commercial photographer, was suffering from macula degeneration. Due to his terrible vision, he would simply "OK" whatever his stock broker called about. One day my Mom (a Boglehead before we were Bogleheads) was going through his statements and discovered the churning this broker had been doing. Investing shouldn't be complicated and neither should the tax code.
Post: Many Unhappy Returns
Link to comment from June 19, 2024
"Money is the root of all evil" No sorry. That is the often misquoted version. Here is the real quote: "For the love of money is a root of all kinds of evils. It is through this craving that some have wandered away from the faith and pierced themselves with many pangs." 1 Timothy 6:10English Standard Version
Post: What’s your favorite financial quote?
Link to comment from April 6, 2024
We desperately want to give to our children as well as some charities now. The dilemma is ensuring we have enough left for our future (we are 68 and 66), dealing with tax rates and IRMAA cliffs, as well as rationalizing starting SS now vs 70 to help with this giving and the associated torpedo coming from that IRS office. And let's not forget the RMDs and the need to reduce their impact by reducing/draining/converting IRAs....I'm a wicked smaaht guy(MA thing) but this makes my head hurt.
Post: Give While You Live
Link to comment from March 20, 2024
Build your own ETF of Dividend Growth Stocks that have raised their dividend at least 25 years (aka Dividend Champions). Reinvest the dividends until retirement and then harvest the dividends. We have been retired 3 years now and have not "sold" a single share. YMMV
Post: If you couldn’t buy index funds, how would you invest?
Link to comment from March 9, 2024
Yes and no. There is the "belonging to the team (family)" aspect of chores that reflects pulling your weight and contributing to the team's purpose, survival, etc. And then there is the financial life lesson of working hard, doing a good job, and being rewarded for your efforts. Both are critical to a child's upbringing.
Post: Should children be paid for doing chores?
Link to comment from March 2, 2024
I used to get teased by our family that I suffered from "the paralysis of analysis." Now I consider it a strength (and money saver!). Before any big purchase I do exhaustive research...and then put it away for a few days. If I still like the decision I'll go for it. Often, the "desire" fades and I've saved considerably.
Post: Need or Want?
Link to comment from January 13, 2024
#5: https://opensocialsecurity.com/ can be used (free) to better gauge this decision. Plus you can play with different filing time frames at the bottom of the page. We have decided to have my better half start at her normal retirement age (which allows her to keep working without sacrificing SS benefits) while I wait until 70 (to maximize her survivor benefit).
Post: Hug the Center Lane
Link to comment from January 10, 2024