I don't have Navidia but anther that has done very well over the last 10 years. My plan is to sell off half of it. and invest it in my taxable account for dividend income from stocks a bond ETF For income. Income I can use to cover living expenses. Right now my favorite income ETF are SCHD and VYMI and FAGIX. Right now the dividends are reinvested for growth. However When I tap the fund for income reinvestment and growth would stop.
To insure growth would contineue faster thant he rate of inflation I need an additional fund. Now I could use an index fund like the S&P5000 but most of the growth it generates is from only a handful of stocks. So Instead of an index I am planning on using SCHG. This fund only have growth stocks. So the growth is more consistent and often more than a regular index. As a consequence it also has a very low yield. About 0.5% Since I have the yield problems solved by there funds I don't need Yield from the growth fund. So this smalll amount of yield is always reinvested. On average the growth fund should grow by 10 to 15% per year. This is faster growth than the S&P500.
Then the only thing I have to do it to periodically rebalance and invest new omney when I have it. Also I can gradually add additional ETs to optimize it over time. The long term goal is to cover al my living expenses to allow me to retire before age 60 when my retirement accounts become available.
Note since this is a taxable account it will creat yearly taxable events. Initially the tax is small and your work income could cover the tax. However later as the fund grows Taxes can become significant. When you reach this point estimate the tax bill for the investment and either adjust your gob tax withholdings or switch off the reinvestment of the dividends and set some money aside to cover the tax it generates. Manually reinvest the rest.
To insure growth would contineue faster thant he rate of inflation I need an additional fund. Now I could use an index fund like the S&P5000 but most of the growth it generates is from only a handful of stocks. So Instead of an index I am planning on using SCHG. This fund only have growth stocks. So the growth is more consistent and often more than a regular index. As a consequence it also has a very low yield. About 0.5% Since I have the yield problems solved by there funds I don't need Yield from the growth fund. So this smalll amount of yield is always reinvested. On average the growth fund should grow by 10 to 15% per year. This is faster growth than the S&P500.
Then the only thing I have to do it to periodically rebalance and invest new omney when I have it. Also I can gradually add additional ETs to optimize it over time. The long term goal is to cover al my living expenses to allow me to retire before age 60 when my retirement accounts become available.
Note since this is a taxable account it will creat yearly taxable events. Initially the tax is small and your work income could cover the tax. However later as the fund grows Taxes can become significant. When you reach this point estimate the tax bill for the investment and either adjust your gob tax withholdings or switch off the reinvestment of the dividends and set some money aside to cover the tax it generates. Manually reinvest the rest.
Statistics: Posted by Steven F — Tue Jul 23, 2024 11:54 am — Replies 16 — Views 1264