04-25-2015, 10:38 AM
Good question, crimsonghost.
We have less than 10 years before we reach 65, which is my "goal post" point. We're not specifically planning to retire at that time but that will be the point where we start finalizing our plans. As of right now, we're planning to do something similar to Kerim.
A couple years before that point, I intend to start letting the dividends accumulate as cash. When we get a couple years of dividends banked, then we'll go back to reinvesting any further cash until we decide what we're going to do. When we decide, we'll just automate a monthly withdrawal of 95% of one years dividends and let the rest continue to sit in the account. This way, when the actual dividends are received, it doesn't matter what month they are paid. They'll just replenish our cash pile as they come in.
If were are in a recession/bear market at the time, then things may be delayed a little because that will probably be an opportune time to invest a little of that cash to boost the dividend stream further.
We have less than 10 years before we reach 65, which is my "goal post" point. We're not specifically planning to retire at that time but that will be the point where we start finalizing our plans. As of right now, we're planning to do something similar to Kerim.
A couple years before that point, I intend to start letting the dividends accumulate as cash. When we get a couple years of dividends banked, then we'll go back to reinvesting any further cash until we decide what we're going to do. When we decide, we'll just automate a monthly withdrawal of 95% of one years dividends and let the rest continue to sit in the account. This way, when the actual dividends are received, it doesn't matter what month they are paid. They'll just replenish our cash pile as they come in.
If were are in a recession/bear market at the time, then things may be delayed a little because that will probably be an opportune time to invest a little of that cash to boost the dividend stream further.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan