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Subject:  Re: income generating strategies help Date:  12/5/2009  4:00 PM
Author:  BruceCM Number:  66533 of 78666

currently was reaching out to people with more history/experience in income investing and was looking for specific recommendations by individual Fools.

I have been an evolving income investor since 1999 when I retired from the military. DW and I had accumulated high 6 figures in RE sales over the years, and wanted it to start providing income that would sustain us through retirement years, along with extremely modest military pension, starting at age 48. Started research on asset allocation for sustainable 4 to 4.5% annual withdrawal rates, growing by 3% each year, and so on and so on.

But then as I looked at the stocks, I found that many of them were generating reliable dividend income of >4%, growing annually with inflation, and NOT consuming capital! Huh? Did I miss something? What isn't there a mountain of research on this approach? Why isn't this a topic in the popular personal finance media? Was I missing something in this seemingly simply bit of investment logic?

Ok, loooong story are the income classes I've found, in order of the proportion I currently hold them.

1. Exchange traded equity REITs. The REIT act of 1960 created these income machines that do exactly what they were intended to do. But as we've recently seen, dividends