"There's no absolute right way to do this" Absolutely! Some may need all the income they can get, while others don't plan on using theirs, plus everyone in between.
From my perspective, it is much easier to manage funds for young people. With any common sense at all if would be hard not to have a nice "prize" when the time comes. Besides, who will still be here when their kids retire?
On the other end of the spectrum, my sister and her husband want $1000 a month from each of their IRAs.
When they were in Missouri I had 15% federal tax deducted, and a 6% state tax. Here in Pa. they don't pay state tax on IRAs. This should have given me a break, but they decided they did not want any tax taken off of their SS, so it takes $1266 a month to get $1000. $15,192 each per year.
My sister should think I stink. I took this account on ( she has another larger one ) in Oct. 2014. Tried to play Mr. Safety. It was earning about $1500 less than she wanted to take out each year. I figured dividend growth, which made up most of the port. would work it out over not that long of a time. KMI, a little BPEPP, CVX freeze, etc., and in the end, she has deposited $284,728, and withdrawn $27,054 = $257,674.
Her account is worth $259,352 today. On her original $284,728, the $15,192 needed works out to a 5.335% withdrawal rate. Major changes have her annual income now at $16,945.
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Her husband should think I am the best thing since sliced bread. I have had this account since Sept. 2010, and there is much truth that an up market can make the dumbest investor look smart.
His deposits: 2010 = 173,463. 2012 = $40,774. First was an old IRA with Ameriprise. Second was 401k when he retired.
Withdrawals:
2011 - $19,000
2012 - $17,197
2013 - $11,779
2014 - $15,612
2015 - $21,975 / He needed a motorcycle and at that point I told him that any withdrawals over the $1266 a month and all bets of continuing were off.
Deposits = $214,207 - $85,563 withdrawals = $128,644. His account today is $269,807.
This account always leaned much more to higher yields than my sisters, and was covering the $15,192 annual withdrawal plus, when they started the $1266 a month back in Oct. 2014.. It also had KMI along with BBEP, and some others. Current income is $16,965.
For now I will just let it alone, but he has some low yielding KMI that could be sold, and his HT-B is being called and not showing any income on his statement.
Wish I knew how to post this nicely, but didn't want to just yada yada without putting up his holdings.
Investment Current Value / Prior Value / Period Change / % Change / Estimated Income / Estimated Yield
Total $266,917.22 .....$263,003.07...... $3,914.15....... 1.5%...... $16,965.45...... 6.4%
ALPS ETF TRUST ALERIAN MLP AMLP 300 12.21 3,663.00 05/29/14 5,454.96 18.18 (1,791.96) 341.10 9.3%
ALTRIA GROUP INC COM
MO 500 63.64 31,820.00 - - - - 1,130.00 3.6%
ARBOR REALTY TRUST INC PFD SER C REIT
ABR PRC 50 25.0001 1,250.01 05/21/14 1,252.49 25.05 (2.48) 106.25 8.5%
ASHFORD HOSPITALITY PRFD E
AHT PRE 100 25.24 2,524.00 04/11/16 2,501.33 25.01 22.67 225.00 8.9%
AT&T INC COM
T 100 39.15 3,915.00 04/21/15 3,284.96 32.85 630.04 192.00 4.9%
B&G FOODS INC COM
BGS 200 42.99 8,598.00 04/11/16 6,556.53 32.78 2,041.47 336.00 3.9%
BLUEROCK RESIDENT GR INC PFD 8.25% PERP 10/21/22 QTRLY
BRG PRA 100 25.94 2,594.00 04/20/16 2,496.99 24.97 97.01 206.30 8.0%
CAPITAL PRODUCTS PARTNERS FOREIGN EQUITY
CPLP 700 2.94 2,058.00 04/21/15 3,335.93 4.77 (1,277.93) 210.00 10.2%
CARE CAP PPTYS INC COM
CCP 700 25.99 18,193.00 06/02/14 17,965.16 25.66 227.84 1,596.00 8.8%
CHATHAM LODGING TRUST REIT
CLDT 300 21.69 6,507.00 04/11/16 6,033.39 20.11 473.61 396.00 6.1%
CITY OFFICE REIT INC REIT
CIO 300 11.77 3,531.00 05/23/16 3,457.59 11.53 73.41 282.00 8.0%
DYNAGAS LNG PARTNERS LP PFD 9% QTRLY CALL PERPETUAL
DLNG PRA 150 22.89 3,433.50 05/02/16 3,438.99 22.93 (5.49) 337.50 9.8%
FIVE OAKS INVT CORP PFD SER A VAR DIV PERP/CALL
OAKS PRA 200 19.30 3,860.00 05/21/14 5,009.79 25.05 (1,149.79) 437.60 11.3%
HERSHA HOSPITALITY TRUST PREFD 8% SER B CALLABLE
HT PRBCL 100 25.31 2,531.00 04/18/12 2,500.98 25.01 30.02 200.00 7.9%
KINDER MORGAN INC COM
KMI 465 18.08 8,407.20 04/03/14 15,885.12 34.16 (7,477.92) 232.50 2.8%
LADENBURG THALMANN FINANCIAL PFD SER A 8% PERP/CALL MNTHLY
LTS PRA 400 24.35 9,740.00 05/23/14 8,940.94 22.35 799.06 800.00 8.2%
LTC PROPERTIES COM
LTC 400 46.62 18,648.00 10/06/10 10,427.21 26.07 8,220.79 864.00 4.6%
MATTEL INC COM
MAT 100 31.88 3,188.00 05/30/14 3,880.98 38.81 (692.98) 152.00 4.8%
MEDICAL PROPERTIES TRUST INC COM
MPW 1,000 14.70 14,700.00 10/04/10 9,992.95 9.99 4,707.05 920.00 6.3%
NATIONAL RETAIL PROPERTIES INC COM
NNN 200 45.33 9,066.00 10/18/10 5,356.15 26.78 3,709.85 348.00 3.8%
NORTHSTAR REALTY FINANCE CORP REIT PFD SER E
NRF PRE 325 24.53 7,972.25 05/19/14 8,131.72 25.02 (159.47) 711.10 8.9%
NORTHSTAR REALTY FINANCE CORP REIT
NRF 75 13.50 1,012.50 04/07/11 714.67 9.53 297.83 120.00 11.9%
NORTHSTAR REALTY FINANCE CORP REIT
NRE 25 11.25 281.25 11/02/15 284.50 11.38 (3.25) 15.00 5.3%
NUVEEN PREFERRED INCOME OPPORT CLOSED END FUND
JPC 2,000 9.93 19,860.00 04/08/16 19,159.78 9.58 700.22 1,608.00 8.1%
ORCHIDS PAPER PRODUCTS CO COM
TIS 100 31.76 3,176.00 04/08/16 2,724.99 27.25 451.01 140.00 4.4%
PENNSYLVANIA RL ESTATE INVT PREFERRED CLASS A 8.25%
PEI PRA 100 26.28 2,628.00 04/25/12 2,511.99 25.12 116.01 206.30 7.9%
PROSPECT CAPITAL CORPORATION COM
PSEC 500 7.51 3,755.00 07/11/12 5,365.79 10.73 (1,610.79) 500.00 13.3%
REAVES UTILITY INC TR COM
UTG 300 30.25 9,075.00 03/21/11 7,558.67 25.20 1,516.33 544.50 6.0%
RESOURCE CAPITAL CORP PFD SER B
RSO PRB 300 20.24 6,072.00 04/03/14 6,895.84 22.99 (823.84) 618.90 10.2%
RESOURCE CAPITAL CORP COM
RSO 50 12.73 636.50 03/31/14 1,125.99 22.52 (489.49) 84.00 13.2%
SOTHERLY HOTELS INC COM
SOHO 4,000 5.12 20,480.00 05/02/16 20,814.87 5.20 (334.87) 1,440.00 7.0%
UNIVERSAL HEALTH RLTY INCM T SH BEN INT
UHT 300 53.50 16,050.00 10/12/10 10,509.99 35.03 5,540.01 774.00 4.8%
VECTOR GROUP LTD COM
VGR 214 21.47 4,594.58 11/25/14 4,617.59 21.58 (23.01) 342.40 7.5%
VENTAS INC COM
VTR 75 66.33 4,974.75 06/02/14 4,277.26 57.03 697.49 219.00 4.4%
VEREIT INC COM REIT
VER 600 9.59 5,754.00 05/21/14 7,395.74 12.33 (1,641.74) 330.00 5.7%
Total Stocks $264,548.54 $219,861.83 $12,866.71 $16,965.45 6.4% |
