Seaferer20

When the Economy Hands You Lemons, Consider Dividend ETFs

It's hard to convince clients of the wisdom of dividends when their NAVs continue to plummet and the overall portfolio value is decreasing despite the dividend payment. That's why a valuable rule of thumb is that one should have 3 years of anticipated portfolio cash needs, i.e., income, in cash/short-term bonds. It relieves the pain a bit knowing that one needn't sell at a loss to put the next loaf of bread on the table.