12-10-2021, 05:33 PM
(12-10-2021, 03:24 PM)ken-do-nim Wrote: There's an argument to be made that trimming growth stocks will net a higher retirement return than living off of dividends, but psychologically I find it hard to sell beloved stocks myself, never mind on a down day. I still have over 10 years, but I've always assumed that when I retire, everything in my portfolio that doesn't yield at least 1.5% will go bye-bye in one big sell-off and get converted to dividend payers. I expect I will aim for a yield around 5%. That said, I'm in a learning process about what's a value stock, and what's a value trap stock. I think I've gotten into and out of AT&T 3-4 times in the past 2 years, and at this point I don't see myself going back. I'd much rather put my money into say RQI even though it is less well known, though admittedly an event like the 2007-2008 financial crisis scares me.
Keep in mind I haven't done it yet - over two months before I can even start. I could revert back to how I've been doing things all along. One item I forgot to mention is wanting to have all of the 403b invested within 3-6 months after the rollover but I am concerned if there's a sector trading weak during that period and I buy too much in it. I got pretty heavy in pharma and HC in early 2019 when it was trading so cheap. Not enough to be a major issue; I think 28% at its peak. But I didn't have the type of capital I'm tossing in all at once with the rollover. OTOH, as it's a tax-advantaged account maybe that doesn't matter and I can rotate out over time. But I'm still going to watch for it. FYI, I don't do much sector investing with, say, a target of X% in this or that. But I do pay attention and don't want to get overly out of whack.
Then again, there was a guy on SA. His username was OnlyApple (I think) and he said he lived true to the handle. Hard to tell him he was wrong. But I could never do that.