Investment Strategy: What Portfolio Withdrawal Rate Can You Live With? [View article]
The best withdrawal rate is none. Living off the interest generated, plus whatever SS benefits come in is the best formula. Roth conversions are the best way to keep the income away from taxes. The bitter pill of taxation on the year of conversion can be the best remedy in the long run. Avoiding withdrawal of principal should be avoided for as long as possible. the so called formulas are a recipe for diaster.
Retirement Strategy: How Long Will Your Portfolio Last? [View article]
I agree. The best protection against running out of funds is to live only off of the interest and dividends.. As an added safety feature , I use only the funds accumulated during the prior year.
Time To Throw Away The 4% Withdrawal Rule For Retirement [View article]
Tim correctly recognizes that it is a very good idea to live off of dividends and interest rather than invading the retirement principal.This method does not subject the retiree to the ups and downs of the market. However, for individuals close to or at retirement time, quality preferred stocks can yield a much higher return than common stocks.
What Will $2 Million Get You In Retirement? [View article]
Thanks for your article. However, if the couple is receiving $35,0000 per year in SS befefits, they should never run out of money if they only need an additional $56,000 per year. Indeed, they may never even have to invade their principal.
Kohlberg Capital Provides Consistent 10% Yields [View article]
Thanks for your article. KCAP has been a consistently good payer for me. With these types of companies you need to have a strong stomach, buy the dips, and constantly monitor them for possible bad news. Please continue to write on these interesting opportunities.
Merrily Going Off The Fiscal Cliff Together [View article]
Excellent article! The AMT patch has not been fixed for 2012, and if no deal is reached, millions of taxpayers will see their federal taxes go up unexpectedly. That said, I do not believe that a deal will be reached anytime soon. Only one side appears to be willing to reach a compromise,while the other seeks to dictate surrender terms. If taxes go up for everyone next year, the modeling projections will be worthless and cash will be king. The unfortunate result of the cliff will be the large number of people hurt financially and their greater dependence on government.
Retired Investors - Treat Your Income Generating Portfolio Like A Business [View article]
Thanks for your excellent article. However, I suggest redeploying some of your lower payers to include some better paying, below par, preferred stocks with a longer call protection.
The Most Important Question: 'What If My Investment Fails?' [View article]
Going back to your excellent Oct 11 article discussing the English method, I suggest that it is not the number of companies in your portfolio , but rather the relative proportions of the various dividends generated by them. Some positions will generate more of a return than others. Any loss that you may sustain can be viewed as a loss of income rather than a loss of your net worth. I have found that owning about 33 positions -3 percent each- with approximately equal rates of return has worked well for me. Sometimes adjustments and reallocations are needed. I also encourage you to consider some high quality preferred selling below par to add additional income. Finally, as a retired lawyer, I encourage you to attend law school. Even if you decide not to practice law, the training will help in many endeavors. Please keep up your excellent articles.
What Will $2 Million Get You In Retirement? [View article]
Since these folks have 5 years or some before the MRD hits, they could make Roth conversions to reduce the amount of tax on the required MRDs to lessen their tax impact. As a part of that plan, they could buy higher yield bonds in their regular IRAs and convert them in kind just before the semi-annual interest is due. While the value of the bond is taxed on the conversion, my understanding is that the accrued interest passes without any tax. Once the MRDs hit ( which can be managed within the SS taxability amounts), they can alternate years to withdaw from their Roth every other year so that their taxable income is minimal or close to it. Then in the next year they can contine to make Roth conversions while paying small quarterly payments based on the low income and have until April of the next year to pay the complete tax. Two million gives a lot of flexibility and the couple should invest a few well spent dollars in getting some professional tax advice. You are so correct that taxes must be considered. Thanks again.
The Wisdom Of Not Reinvesting Dividends [View article]
Taking the cash allows redeployment of capital, which creates additional diversification,as well as allowing for the prospect of the purchase of investments paying a larger yield. The next step in the enlightenment process is to move from being a dividend growth investor to an income growth investor. In one of your first articles, you discussed the old English approach that did not measure the amount of wealth, but rather, the income produced by it. Paper increase in the value of holdings does not match the payment of interest and dividends.
Revisiting My Bullish Thesis On BP Prudhoe Bay Royalty Trust [View article]
Thanks for your article. I own BPT, but it is not a hold and forget position. These types of issues require much more attention than regular ones. Please keep us posted.
3 Dividend Stocks To Buy Now And Hold Forever [View article]
I like all three for the prudent part of a portfolio. However, no stock is like a diamond, and thinking that it can be held forever is a mistake in my view. Please keep writing about good stocks. Thanks
The Best Place To Be For REIT Income In 2012 [View article]
Very good article. I already own PMT and CXS, and it helps to have some reinforcement for those purchases. I certainly do not expect that one must own a position in order to give favorable information on it. Thanks.
Investment Strategy: What Portfolio Withdrawal Rate Can You Live With? [View article]
Retirement Strategy: How Long Will Your Portfolio Last? [View article]
Time To Throw Away The 4% Withdrawal Rule For Retirement [View article]
What Will $2 Million Get You In Retirement? [View article]
Kohlberg Capital Provides Consistent 10% Yields [View article]
The Restaurant Performance Index Is Flashing Warning Signals [View article]
Merrily Going Off The Fiscal Cliff Together [View article]
Retired Investors - Treat Your Income Generating Portfolio Like A Business [View article]
Your Options For Tax-Deferred Retirement Investing [View article]
The Most Important Question: 'What If My Investment Fails?' [View article]
What Will $2 Million Get You In Retirement? [View article]
The Wisdom Of Not Reinvesting Dividends [View article]
Revisiting My Bullish Thesis On BP Prudhoe Bay Royalty Trust [View article]
3 Dividend Stocks To Buy Now And Hold Forever [View article]
The Best Place To Be For REIT Income In 2012 [View article]