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Strategies & Market Trends : Young and Older Folk Portfolio
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Gordon Gekko 23
Riojas54
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To: chowder who wrote (7780)8/9/2024 1:34:18 PM
From: SeeksQuality3 Recommendations  Read Replies (1) of 22060
 
"The Older Folk Portfolio has a 7.05% yield. It's generating a good level of income. A similar approach puts your future income needs in effect almost immediately, and then once the income objective is achieved, the excess dividends can then go towards growthier type assets."

My concern here is that $162k doesn't even cover the upper end of the "expected expenses", let alone the various unusual expenses that are anticipated. I think the yield point needs to go a little higher -- the 7.5% I mentioned likely suffices.

Probably not necessary to explicitly set aside the $60k bridge that I was talking about, but I wouldn't be at all surprised if the one-off expenses ended up requiring that much over the next two years. One of the reasons I recommended that, rather than a lower income level or a lower yield point, was that it is dangerous to get in the habit of trimming from the yield assets when the yield is already stretched. You very much want to get into the habit of sticking to the income and only the income. In this case the $60k bridge would be a fudge factor from which trimming would be permissible. (There may already be emergency savings that would cover this.)

If you were to construct a portfolio with a 7.5% yield point, what would it look like?
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