No. of Recommendations: 0
I'm 42 years old. I've been retired for 4 years. I keep 5 years of
living expenses (17%) of my portfolio in a MMF and the rest (83%)
in a 12 stock RKE combo portfolio.

Every year I sell about 3.5% of my stocks (up to 4% because my R4
stocks throw off about 0.6% in net dividends per year accross the
entire portfolio) and add these procedes to the MMF. I then divide
the MMF value by 60 and that's my monthly draw for the year. I do
this every January.

Question: I'm seriously thinking of switching my five years of living
expenses that I keep in a MMF to NLY and CMO. Both are REITs
that throw off a dividend yield of 16% and 14% respectively.

Thus, with the same 17% in NLY and CMO, plus the dividends I
receive from my R4 portion of my RKE portfolio, I would only have
to sell about 0.5% of my stocks (vs about 3.5% now) to make up the
difference in my income needs.

Would this be a good long-term retirement strategy or am I off my
rocker? Help


You have the advantage of being rather young. Therefore if you can go back to work to supplement your retirement and not be forced to sell off securities in a bad market you could increase your level of risk. Say 2 years of NYL and CMO's and 3 years of cash.
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