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Strategies & Market Trends : Young and Older Folk Portfolio

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To: chowder who wrote (7786)	8/9/2024 1:59:12 PM
From: SeeksQuality	3 Recommendations Recommended By chowder Markbn Tam3262 Read Replies (2) of 22064

I like that structure. Not that I really like aiming for a yield of 7%+, but... SCHD yields 3.5% and has averaged 10%+ dividend growth. If you put 40% of the portfolio into that, and 60% of the portfolio into stuff yielding 10%, then you are right on that 7.5% yield point. Not sure how much growth that gets? The high-yield side of the portfolio will have a tendency to shrink over time. SCHD generates some growth, but probably not enough to keep pace. My guess is that it would become necessary to trim from the SCHD side to build the high yield side, unless the margin of safety on the income generates enough extra to do that. HOWEVER, growth isn't the purpose here. The goal is to have enough space to meet the income needs to survive until the proceeds from the downsizing and inheritance kick in. And at that point the picture ought to become much easier. Having 40% of the portfolio in SCHD (or something similar) gives you a lot of space to "trade up" yield as needed.

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