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Strategies & Market Trends : Young and Older Folk Portfolio -- Ignore unavailable to you. Want to Upgrade?

To: chowder who wrote (7780)	8/9/2024 1:34:18 PM
From: SeeksQuality	3 Recommendations Recommended By Gordon Gekko 23 Riojas54 Waitress Read Replies (1) \| Respond to of 22059

"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?

To: chowder who wrote (7780)	8/9/2024 10:30:55 PM
From: SoCalGal	3 Recommendations Recommended By agniv Menominee SeeksQuality Read Replies (3) \| Respond to of 22059

Sorry for the delay in responding. I wasn't a member so was limited to 5 responses, but Ron fixed that for me. I like the idea of the 7 percent or something close to that. I have taken SeeksQuality's suggestion of having cash available to bridge the gap and have liquidated the smaller retirement accounts of roughly $130k and will invest them in short term CDs. I will be adding another $20k to one of them shortly, so that will be $150k. I also have about $200k in a taxable brokerage account. Under a best case scenario, this might cover 2 years of expenses, but I doubt it will. We're getting hit hard by inflation, especially with regard to insurance, apartments for kids and health care expenses, and I expect that to continue to be an issue even if inflation in general stabilizes. I'm really looking for peace of mind that my 401k can cover most expenses. With some a margin of error, I think I would need $200k, but I feel like that may be stretching too much. A 7 percent yield would be about $160,000 and I think I could live with that given the cash available to bridge that gap and availability of social security in 2 years. Also, I forgot to mention that I manage one of my mom's accounts of about $900k and have been investing in lower yielding, high quality growth stocks there. She has not touched this account for income and probably will not need to, though as many have said, nothing there is guaranteed. In any event, I feel like it gives me the opportunity to balance out my potential future portfolio with less risky stocks. Here is my portfolio if you or anyone has any thoughts: (I've already made a few changes today based on your suggestions, so MSFT for example is gone and I've invested some remaining cash in CEFs). Thank you and SeeksQuality for all the great thoughts and ideas. It has been really helpful to get everyone's input. Symbol Value % Portfolio Income ORI $71,098 3.1 $2,227 O $69,332 3.0 $3,612 PFE $66,207 2.8 $3,895 EVRG $66,026 2.8 $2,891 ENB $65,773 2.8 $4,472 MO $63,350 2.7 $4,924 PM $60,557 2.6 $2,714 KO $59,315 2.5 $1,675 NNN $57,633 2.5 $2,895 ES $57,380 2.5 $2,528 WEC $55,534 2.4 $2,108 MAA $55.411 2.4 $2,128 NEE $55,074 2.4 $1,464 EXR $55,071 2.4 $2,170 AEP $54,617 2.3 $1,971 PRU $54,511 2.3 $2,589 TXN $54,395 2.3 $1,471 BNS $54,299 2.3 $3,639 TU $54,104 2.3 $3,701 ABBV $52,416 2.3 $1,711 DUK $52,392 2.2 $1,943 VZ $51,909 2.2 $3,388 KBM $51,123 2.2 $1,777 CVX $49,160 2.1 $2,210 SO $47,632 2.0 $1,580 AVGO $47,443 2.0 $672 LMT $43,950 1.9 $1,003 MAIN $42,547 1.8 $2,575 AMGN $42,328 1.8 $1,181 TRP $42,261 1.8 $2,714 EOG $41,502 1.8 $1,193 OBDC $35,757 1.5 $3,649 ESS $34,482 1.5 $1,195 SNA $32,510 1.4 $885 PSA $32,021 1.4 $1,212 WDI $30,608 1.3 $3,612 HSY $29,822 1.3 $811 MRK $28,867 1.2 $776 PEP $28,522 1.2 $896 UPS $27,555 1.2 $1,427 HTD $21,499 .9 $1,682 UGI $21,222 .9 $1,357 VICI $21,054 .9 $1,115 PG $20,250 .9 $478 ARE $18,639 .8 $852 HRL $16,944 .7 $597 THQ $13,724 .6 $1,416 ECAT $13,319 .6 $2,875 EOI $12,516 .5 $1,066 EOS $12,254 .5 $1,085 LYB $12,108 .5 $670 BXSL $10,495 .5 $1,081 PAYX $10,455 .4 $329 ARCC $10,440 .4 $977 EXG $10,049 .4 $969 RA $10,032 .4 $1086 IGA $10,017 .4 $1,124 ASGI $9,298 .4 $1,212 ETG $9,236 .4 $791 TFC $8,437 .4 $422 BMY $7,662 .3 $393 NBXG $7,381 .3 $751 ETJ $6,920 .3 $617 RQI $5,960 .3 $454 JAAA $5,069 .2 $326 BDJ $5,009 .2 $408 TYG $4,976 .2 $397 CSWC $4,547 .2 $440 $35k in 1 month CDs average yield of 5.2 percent expiring late August/early September Total: $2,329,003 $116,304