02-05-2022, 12:19 PM
dividends make it easy, less overall thought, but can make an investor lazy and not see the full picture, capital appreciation. what good is a dividend if the original principal (investment) is being slowly decayed away?? when does the investor say enough is enough??
a while back my kplan had mutual funds that paid out dividends/short&long term capital gains which well--made me sit back and do nothing--then they went to ETF's, no dividends...no short&long term capital gain payouts!! the solution?? take profit once or twice a year, sit on the sidelines with those gains in cash within the kplan and re-deploy in the market in opportune times such as we're having now. if the ETF won't pay it out then i'll take it out.
which brings me to stocks that don't pay dividends, you can make your own dividend by taking an "x" amount a year or every quarter.
of course one has to assume the differences between tax deferred and taxable accounts
as far as # of investments to own--some of us and myself included have gotten a little crazy at times
i've been consolidating my investments--it's a slow process
a while back my kplan had mutual funds that paid out dividends/short&long term capital gains which well--made me sit back and do nothing--then they went to ETF's, no dividends...no short&long term capital gain payouts!! the solution?? take profit once or twice a year, sit on the sidelines with those gains in cash within the kplan and re-deploy in the market in opportune times such as we're having now. if the ETF won't pay it out then i'll take it out.
which brings me to stocks that don't pay dividends, you can make your own dividend by taking an "x" amount a year or every quarter.
of course one has to assume the differences between tax deferred and taxable accounts
as far as # of investments to own--some of us and myself included have gotten a little crazy at times
i've been consolidating my investments--it's a slow process