Just wondering what everyone's personal preference was to produce monthly income in a portfolio.
Just generating discussion.
Just generating discussion.
Dividend Investing, Bonds, 4% Drawdown, or Spia?
- Thread starter Justin Bilyj
- Start date
Can I vote for all of the above?
You have to focus on risk tolerance, client objective, and their resources. I prefer to use SPIAs where the client doesn't have any other choice (unsupported assets for the other three) or in leverage scenarios (to fund LI/LTC etc.).
The other three all basically fall into the same category. A well diversified income producing portfolio will have both bonds and dividend producing stocks...The 4% rule has taken some heat recently but with the right portfolio mix, can still provide a decent baseline for an income plan.
Unfortunately, as with most things in our business, "it depends".
- Thread starter
- #3
Ray, what do you prefer for yourself, not your clients...
I'm not trying to produce income from my investments for myself. Income=taxes so my non-qual strategies involve mainly cap appreciation. My retirement plans hold dividend producing stocks, some risky bonds, and some options.
At this stage of my life, my main "income/investment" strategy is growing my agency. I put a lot of my resources into that...
- Thread starter
- #5
Sorry, I didn't mean to make you older than what you already are. I guess I shoulda rephrased my question, what would you use for income if you retired today?
Thanks for contributing to the thread.
Can I ask how you select your dividend stocks? P/E? Sector? Competitive edge?
Thanks for contributing to the thread.
Can I ask how you select your dividend stocks? P/E? Sector? Competitive edge?
Not nice...
I would use dividend producing stocks and bonds. I have a financial advisor who makes my investment selections. While I'm qualified to do the analysis myself, it is not my specialty and thus not a productive use of my time.
- Thread starter
- #7
That came out wrong, my bad.
Figured as much...no worries.
- Thread starter
- #9
While I have your attention, what's your opinion on the target funds i.e. Vanguard? Do you prefer index funds or target funds?
Target funds are for people without any money or knowledge or both. Not to sound arrogant but the "Ron Popeil" style of investing is not customized and has no dynamic structure (two things that I want my investments to have).
So index and ETFs for me...
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