...but no longer morning, ElLobo. LOL!
You come up with some refreshing ideas, ElLobo. Thank you!
- Total return funds that stress dividend yield over NAV growth potential... You mention 10% yield as a goal, but I'm aiming at 6% because of my growthier investments in some aggressive sector and asset MFs (ie financials & gold).
- Share and yield-compounding as it relates to #1 above... I am currently testing the concept of very longterm share-compounding from dividend-reinvestment in several yield-oriented CEFs and OEFs. Who are they? ADVDX, BJBHX, CIHDX, FKINX, GABUX, MAPIX, NOIEX, RYDVX, RYTRX, SWAIX, SWIPX, TBHDX, TINCX and AGD, AWP, DIA, FT and FUND. (Those highlighted have been owned at least 2 years; highlighted and underlined, at least 4 years.) **Note: Since I DO rebalance my MFs on occasion, I really focus more on the results of the share-compounding of my CEFs, individual stocks and ETFs.
- I like your idea of morphing gradually into higher-yielding MFs. I also agree that it makes more sense to acclimatize oneself to the yield-oriented retirement portfolio at least a few years before I take the leap. Thanks, ElLobo!
This is priceless and I'll be saving this for future reference...
As an example, during accumulation, 'accumulate' into whatever stock, bond, or fund that you wish, until the monthly distribution from the fund is some target amount, say $100 (or $300/quarter, $1200/year). Then go on to another stock, bond, or fund. Take all distributions as cash, and reinvest back into whatever stock, bond, or fund is below that target. If a stock, bond, or fund increases it's distribution, trim back down to the target amount.
What you will find is that you will end up putting $12,000 into a 10% yield stock, only $8,000 in a 15% yield stock (or fund, like ADVDX), but $50,000 into a traditional 2.4% yield value equity fund. The actual stock/bond 'allocation' you end up with can be anything, as can the total weighted yield of your portfolio.
And there will be no need to rebalance, for any of the typical reasons!
Thank you, ElLobo!
Regards,
Susan
