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

To: Steve Felix who wrote (27580)	7/6/2017 9:17:32 AM
From: rnsmth	Read Replies (1) \| Respond to of 34328

<<IF he had to take a RMD next year, and today was December 31st, his RMD would be $3812. In his first year of RMD, he would have to sell something.>> He could start accumulating some of his dividends in advance of his first RMD to cover the difference.

To: Steve Felix who wrote (27580)	7/6/2017 9:04:30 PM
From: JimisJim	5 Recommendations Recommended By Bernie Diamond CusterInvestor Mannie pgo-neil robert b furman Read Replies (2) \| Respond to of 34328

Not sure if you meant that you and I would disagree as we near RMD or if you and I both would disagree with "DGI Purists" if I may coin a phrase... All along this journey I've mentioned that I consider what I'm doing a hybrid system of DGI and current income... I think you and I agree that at some point, divvy growth w/ low yield doesn't get the job done as well as current income/higher yield w/ lower dist/divvy growth... that's where I am... During the saving phase, I was 90% in pure DGI mode and investments... as distribution neared (and with the delays in converting my wife's 403b to self-directed IRAs), it was clear I needed to adjust some things in my IRAs and began cutting off reinvestment in any position that became more than 3% of my overall total, and/or current yield dropped below 2.5%, and/or divvy growth dropped off -- this was/is not a hard and fast rule and I have kept 3-4 positions "as is" for various reasons (and also to make the point that flexibility matters)... gradually used those cash harvests to initiate/build positions in non-traditional stuff for current income, such as the CEFs I listed... I also cashed out a couple or so preferred stocks and redeployed into other current income vehicles. My combined PFs are still dominated by the familiar gang of DGI stocks, but am also smoothing out the income curve somewhat with the current income stuff, esp. those that pay monthly... I am squarely into distribution phase now and am happy with the hybrid mix that makes up the whole... if diversification within various types of stocks is good, I think at this stage, diversification in types is also a good thing... until it isn't... but I have the income part solved and still enough pure DGI to account for inflation... my current YOC for everything is over 11% and with the bump from current income stuff, my nominal yield on all combined is over 5.5%... I am not worried - yet - about generating enough income to meet RMDs... will re-assess annually... I don't believe in magic silver single-shot bullets... I have other investments in the real world such as mineral rights in proven ng-producing field (Antrim in Northern Lower Mich.), along with surface rights (timber) and modest orchard/food production land, as well as SW Ohio farmland owned jointly with my brother and a cousin (cousin farms it now, but eventually will rent out much of it)... so lots of moving parts... and the most important part is that most of these other assets are free and clear -- still a couple years to go on land contract for the Ohio farmland, and a construction loan to cover 20% of my capital costs for building my "forever" place in Mich. -- plan is to spend May through Oct. here in Mich (this year I'll have to go back to San Diego area in late Aug. for family reasons) and the rest of the year in SoCal... keeping debt low/manageable has been THE SINGLE MOST IMPORTANT THING I'VE DONE IN MY LIFE FINANCIALLY... Sorry for shouting that last part, but felt the emphasis was necessary... it's been a long hard haul to get to this point, but the prize is in sight and I'm feeling pretty good about it all... so naturally, it's time for another depression to stress test my plans... <g/ng>