12-27-2014, 09:33 AM
My portfolio is supplemental, for discretionary spending. For the past couple of years we have taken about 12% in distributions, which is way higher than is prudent. My goal each year is to replace the distribution plus at least enough extra to cover inflation. I didn't have any realistic expectation of achieving that this year, so am very happy to see combined new cash plus earnings move the value to greater than last year's close and to a new all time high. 2015 distributions may be about the same, not sure yet, but new cash savings goal is much higher. That ongoing process is gradually shifting the ratio from the IRA accounts with their high tax burden to the regular account whose dividend stream mostly has favored tax status.
In two years we will adjust IRA distributions as the current need/use will have been eliminated. At that point will try to keep maximum distributions equal to the earnings stream of investments. Most of social security will continue to fund growth of the cash account.
In two years we will adjust IRA distributions as the current need/use will have been eliminated. At that point will try to keep maximum distributions equal to the earnings stream of investments. Most of social security will continue to fund growth of the cash account.
Alex