Let's say your typical TSM/International equities portfolio is big enough to distribute dividends that cover 2x your annual expenses.
So even in a downturn where dividends are cut in half, you could still survive without "selling" anything (I understand that dividends are equivalent to forced sales).
In this situation, is it safe to go 100% equities? Is fixed income/bonds actually unnecessary?
I'm trying to understand if dividends count as equity "withdrawals", the thing everyone is afraid of doing in a downturn. From my short search, it doesn't seem like dividends dropped that much during downturns so I used 50% as an extreme.
So even in a downturn where dividends are cut in half, you could still survive without "selling" anything (I understand that dividends are equivalent to forced sales).
In this situation, is it safe to go 100% equities? Is fixed income/bonds actually unnecessary?
I'm trying to understand if dividends count as equity "withdrawals", the thing everyone is afraid of doing in a downturn. From my short search, it doesn't seem like dividends dropped that much during downturns so I used 50% as an extreme.
Statistics: Posted by Helium — Wed Nov 20, 2024 7:18 am — Replies 0 — Views 12