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For what it’s worth, I don’t plan to ever own fixed income. I’ve always thought you’d be better off sticking with dividends from equities provided you have a large enough portfolio. It’s more risky, but should be consistent with maximizing net worth.
For what it’s worth, I don’t plan to ever own fixed income. I’ve always thought you’d be better off sticking with dividends from equities provided you have a large enough portfolio. It’s more risky, but should be consistent with maximizing net worth.
depends
dividends are not like interest and dividend stocks are still stocks .
if one wants to be 100% equities then fine . but if one wants to tone down volatility with a more traditional portfolio then that is not going to do it as you will be 100% equities regardless of dividends or not.
at this stage i wouldn’t want 100% equities, in fact i am experimenting with leveraged risk parity portfolios to reduce risk and volatility down even more in retirement.
the bigger the portfolio the bigger the dollar swings can be and that to many can be unnerving in retirement…
You should be able to take your distribution in kind. I’m not aware of a requirement to liquidate, nor have I ever been
so my question is if i have a fund in my ira i want to take the rmd from , and then i typically rebuy it in my taxable account , if i have them change the tax status on the rmd portion without selling what happens ?
does that portion of the fund show up in my taxable account as a new fund or is it some hodge podge accounting within the ira account like mixing deductible and non deductible money.
unless it shows up in the taxable account as a new addition i wouldn’t be interested in just complicating what’s in the ira
I'll never be 100% equities; that's far beyond my intestinal fortitude for volatility. I can handle up to 65% and sleep fine. Over 70% I'm getting nervous.
You folks can be the equity investing heroes, and I'll cheer for your success!
so my question is if i have a fund in my ira i want to take the rmd from , and then i typically rebuy it in my taxable account , if i have them change the tax status on the rmd portion without selling what happens ?
does that portion of the fund show up in my taxable account as a new fund or is it some hodge podge accounting within the ira account like mixing deductible and non deductible money.
unless it shows up in the taxable account as a new addition i wouldn’t be interested in just complicating what’s in the ira
If you move inKind the tax lot should be a single one in your taxable account and the holding period resets to 0 days as well
the problem with high equities going in to retirement is a big hit in dollars can effect your initial income for quite a while .
if you had a million dollars in 2007 and retired you could expect to start with a 40k draw including all interest and dividends .
but if you waited until 2008 and were down 40% now you are no different then someone starting with just 600k and are down to a 24k draw initially , including all interest and dividends.
so while you may eventually be able to kick income back up if we recover it can be years .
the fact is until that day comes and mind you it isn’t recommended you take more then 10% every 3 years plus inflation adjusting if your balance jumps up ,you are on a lot less then anticipated..
so the years leading in can be very important to what your initial income will be and it could take years to safely raise it back up
so missing the dip in stocks by being in fixed income was like really taking a whopping hit in balance by being in fixed income in comparison
no one is trying to convince you to do anything different, but we hope you don’t use the at least i didn’t have to recover logic again as even at the low you were left in the dust.
I'm on record of selling my long positions on 10/2021 and moving into bonds, so I can use the "at least I didn't have to recover logic". Like I've mentioned, I am content being a "silly income investor" as you put it.
I'm on record of selling my long positions on 10/2021 and moving into bonds, so I can use the "at least I didn't have to recover logic". Like I've mentioned, I am content being a "silly income investor" as you put it.
going back to october 2021 i show 100k in the total market index fund worth 105,140 and up
the fidelity municipal bond index is 94,333 still down 2.66%
a total bond fund bnd did even worse 88,410 down 5.33
long term bonds 6692 down 17.27
so fixed income has done worse
Last edited by mathjak107; 12-26-2023 at 08:00 AM..
going back to october 2021 i show 100k in the total market index fund worth 105,140 and up
the fidelity municipal bond index is 94,333 still down 2.66%
a total bond fund bnd did even worse 88,410 down 5.33
so fixed income has done worse
I hold bonds till they mature, so not that interested in the fidelity muni index or your calculations
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