No, I draw much less than I spend.So you are withdrawing funds from your investments at the beginning of the month to fund anticipated expenses, but find that at the end of the year you have withdrawn or earned more than you spend.
VWIAX (Wellesley Income) is 87.5% of my portfolio, PRCFX (TRP Cap App and Income) is 12.5%. I may add another fund to my Roth IRA but that's up in the air.
My portfolio yield is 3.50% and I'm only drawing/taking 1.50% so I have an excess of 2% to reinvest throughout the year and that doesn't include capital gains. Being able to reinvest some income and cap gains has long been an objective of mine, it's one way I defend against a major market decline. I'm also thinking about leaving my portfolio to a good cause and I think a income engine/portfolio will fulfill that role nicely.
I'll have to make some adjustments in a couple years though due to RMDs.
Statistics: Posted by KEotSK66 — Wed Jan 08, 2025 4:58 pm — Replies 51 — Views 2212