12-08-2021, 07:06 AM
(12-08-2021, 06:33 AM)crimsonghost747 Wrote: Looks like a decent portfolio overall.
I know you said you aren't worried about AAPL being such a huge percentage but I think that now I do understand why you feel like selling some AAPL (and GOOGL) periodically in order to supplement your cash flows. It just makes sense to trim, especially AAPL which is a huge percentage of your portfolio but provides a tiny part of the dividend income.
Unfortunately I do not think there are many good solutions for "fixing" the fact that MO and ABBV both generate over 10% of your dividend income. What I would do in your shoes, if I were adamant on fixing this issue, would be to sell a small part of AAPL and a small part of one or both of those high yielders and buy something in the 3-4% yield range that you like with the proceeds of those sales. You'll lower your exposure to AAPL, you'll lower your exposure to the dividend of MO&ABBV, and when calculated correctly these moves won't affect your dividend income at all.
The IRA rollover will give a "paper fix." At least for MO - I won't be buying it there. Good chance I add more ABBV. I won't generate the dividends in the IRA that I do in my Taxable Account but it will give me some so the MO % should drop.
I'm already short of dividend income in the taxable account and there aren't many ways to replace the lost ABBV/MO income so swapping them out isn't a very attractive option. I'm already going to feel a pinch once I do whatever the heck I'm gonna do with T. The income concentration is an issue but not a massive one - I have a very large (to me anyway) pool that I don't need to ever touch in the IRA, until the IRS makes me.
My GF likes to talk about high class problems. The same for my funding my retirement - I'm worried about massaging things for tax efficiency. I'm not worried about keeping gas in the cars, keeping the lights on or buying groceries. That IS a high-class problem. Which is weird as I've never had a high-class salary.
Thank you for the comment.