Hi,
So I am wondering about couchpotato investing and gains. If I understand correctly, all gains on index investing are paper gains as in they are not realized until one sells all the securities and cashes out, right? Or when rebalancing, you capture a bit of that gain because you are selling high priced assets to buy cheaper ones.
But do these funds also pay dividends like stocks would? Or when you retire, you sell 4% of your portfolio every year and that works out OK because it is less than the growth (on paper) of your portfolio? Am I missing something?
Thanks,