DGI For The DIY

[ken-do-nim]

(04-26-2021, 10:07 PM)EricL Wrote: My thoughts on growth vs. income.

High Dividend Growth Stocks

If I had to do it over again with my public portfolio I'd go more with the 1-2% yielders and less with the 4-6% yielders.

Let capital gains build with the higher growth stocks and save the higher yielders until I need the income at retirement.

Fortunately, I've had a good mix of both so I've generated some nice capital gains in stocks. I've learned a lot in the eight years since I started the project, which was the whole reason for doing it in the first place.

That's another question I've been thinking about.

Option 1: gradually increase the yield in my portfolio.  Yield minimums by age:
Age 48: 2%
Age 50: 2.5%
Age 52: 3%
Age 54: 3.5%
Age 56: 4%
Age 58: 4.5%
Age 60: 5%

Option 2: big switch-over from growth to income at age 60
Age 48-59: 2%
Age 60: 5%

(And then assuming $3M goal reached, x .05 = $150,000 per year)