PP vs Dividend Growth Investing

Discussion of the Stock portion of the Permanent Portfolio

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mathjak107
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Re: PP vs Dividend Growth Investing

Post by mathjak107 » Thu Mar 19, 2020 7:38 pm

If I needed income , which I do ,it comes from rebalancing a diversified portfolio yearly..

In fact what we did five years ago is start with the years desired income up front in cash ready to go.....

Through out the year all dividends in the iras get reinvested ...all dividends , and interest in the taxable accounts get buffered in a cash bucket .that goes towards next years spending ....at years end we see what we are short , rebalance and refill for spending again ....down years like this would have bonds being sold ......

It is much easier I find to buffer the income then try to live hand to mouth ....some years our funds produced as much as 70 k in dividends , interest and gain distributions...other years like 2018- we saw as little as 30k ......so buffering works better for us than trying to live off a stream directly that varies year to year.

How that buffer is filled or the source is irrelevant ..... some years our income has more distributions from the funds on their own and less rebalancing by us and some years the reverse .....

With rates so low now and dividends being cut it will take more rebalancing of the portfolio at years end unless we recover
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