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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: chowder who wrote (5951)	9/23/2010 8:07:00 PM
From: Steve Felix	Read Replies (1) \| Respond to of 34328

A plan? I'm so glad you asked! My brother in law is the easy one. Roughly $170k and all he wants is to withdraw about $500 ( $400 but taxes to pay ) a month. A 3.5% yield would cover it. Since Reits could be part of this, it should be easy enough to allow for some nice dividend growers. It will probably be another year before he begins withdrawing. My sister has both Roth and convential IRAs. Her Roth is 12k+ invested in Vanguard GNMA fund. She likes it and is very comfortable with it. Plan to just leave it be. Her conventional IRA value is about $350k. 60k is in private reits that will stay with Ameriprise. Plan to sell one in December for roughly $14,100. That leaves $290k for the moment. The main problem is that she has set up a 72t wherein a specific monthly withdrawal is set up. This must be maintained until she is 59 1/2, next August 12th. After she is 59 1/2 she plans to cut back to withdrawing $10k a year. That would be easy. Ouch! From her statement: Withdrawals Other Withdrawals 08/13/2010 Withdrwl IRA DISTR TRF TO: 000599529 -$2,152.12 08/13/2010 Withdrwl IRA FED WITHHOLDING -$717.38 Total Other Withdrawals -$2,869.50 With 11 months to go, that adds up to $31,600. You can't make a silk purse out of a sows' ear. The private reits at Ameriprise earn about $349 a month from what I see, dropping the need to $2520 a month. Calculated out, it would take a 10.4% yield to make it work out. I wouldn't attempt that with your money. lol! I've thought about setting 8k aside to cover the next three months, then sell the one reit ( I don't like for a few reasons ) gaining enough to cover another 5.5 months. With only two and a half months to go, hopefully there would be enough dividend income produced to cover. At that point any income over the $10k she wants to withdraw annually could be reinvested. All thoughts and suggestions by anyone appreciated.