The Motley Fool Discussion Boards
Retirement Discussions / Retired Fools
|Subject: Re: Getting cash from a stock portfolio||Date: 6/12/2000 10:45 AM|
|Author: TMFPixy||Number: 4197 of 19741|
Greetings, Boib, and welcome. You wrote:
<<I have always put money into the market. A dollar here a dollar there over the years has added up to a portfolio of about 200K. Now that I'm about to retire I want to take some money out.
It sounds fairly simple with a 200K portfolio to have an income of $1000 per month. A withdrawal rate of ½ of 1 % each month or 6% per year. Where I have a problem is how to convert this to a steady income stream. My portfolio has 10 holdings fairly evenly balanced. Some pay dividends some don't . I hold a Foolish 4 screen as four holdings and 2 MI screens which I consider 1 holding each. The remaining 4 holdings are MSFT NOK and 2 Canadian Companies. ( I'm Canadian… different cap gains and dividend taxation)
Any suggesstions as how I can manage an income stream. I have considered going to one or two index funds and setting up a periodic withdrawal program but don't really want to give up the potential additional returns I might get with the portfolio I am holding now.
I trade the MI screens quarterly but it looks like a loosing quarter when I rebalance this month. Also my F4 stocks didn't fair to well this year and I'm due to rebalance at the end of June. Right now I'm down 17% and will possibly hold Cat and EK and sell Sears at a loss and GM at a small profit.
I am comfortable holding 100% equities. Just looking for suggestions as to how I get cash out. >>
I wish there was a simple answer to your question as to how to withdraw your living expenses. Unfortunately, there isn't. In your case, the