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Learning, Sharing, and Teaching => Investor Alley => Topic started by: PBandJelli on February 17, 2018, 09:48:03 AM

Title: Income Funds?
Post by: PBandJelli on February 17, 2018, 09:48:03 AM
I see lots of recommendations for total market index funds, but for those of you who are FIRE'd how do you get to 4%?  Do you use income funds?  The total market funds I see named here only spit off 1.5-1.9 percent in dividends.

Newbie here...sorry for the silly question.
Title: Re: Income Funds?
Post by: Rob_bob on February 17, 2018, 10:09:58 PM
Not fired but you sell shares in addition to the dividend to get the 4%.
Title: Re: Income Funds?
Post by: chasesfish on February 18, 2018, 05:21:51 AM
I had that question too, here's a case study that was done on my situation by Early Retirement Now:

https://earlyretirementnow.com/2018/01/10/ask-big-ern-a-safe-withdrawal-rate-case-study-for-mr-and-mrs-shirts/

The long answer is:

- Dividends plus sales from the taxable account
- Slow conversions out of my IRA to Roth IRA
- Withdraw Roth Conversions.

I do own 10%+ in Real Estate Investment Trusts, the two I own pay 6% and 7.4% out in monthly dividends. 
Title: Re: Income Funds?
Post by: PBandJelli on February 18, 2018, 06:46:29 AM
Super helpful, thank you!
Title: Re: Income Funds?
Post by: salmo trutta on February 18, 2018, 04:28:51 PM
You might look at PIMCO - I like the PIMCO Dynamic Income Fund (PDI). It has a long track record of solid capital preservation and a rock solid yield approaching 9%. You could also consider PCI, the PIMCO Dynamic Credit Income Fund that will offer you some the same capital protection and a yield approaching 9% as well, I own that one too. Another good one is PONDX that is very stable and yields over 5%.

Through ETFs, preferred stocks, and REITs I have built a portfolio that yields over 7% and provides for market stability, income stability, and capital growth that well outpaces inflation - it also provides me the income I need to satisfy my objectives...

Cheers!