Not a lot of postings recently so thought I’d try to stimulate others thoughts.
IRA Portfolio for retirees
Dividend - 35% - 7-10%+yld , Monthly payers if available but quarterly ok.
Examples: AGNC, NLY, NYMT, EFC, ECC, RYLD, ABR, ETG
Preferred - 5% PFFA or Individual preferreds
Dividends & Preferreds will cover most of your RMD for many years.
At some age you will surely need to sell other equities to cover RMD
since the IRS goal is to liquidate IRA at 90-100 years old.
Beat SP500 - 20% These have beaten SP500 for 1,3,5,10 yrs. Jury is still out for 2022.
Examples: SOXX, IVW, IWY, IYW, SMH, there are others
Growth - 30% Generally pay low dividends 0-4%
Examples: SPYG, AAPL, GOOGL, TSLA, MA, CSCO, UNH
Playground - 10% Specs where you buy whatever floats your boat… Options,
CCI crossings, MACD picks, momentum’s, buy the dips, Cyber
Security, Saul stocks etc.
Portfolio rational - The dividend payers are to “help” fund your RMD withdrawals.
Dividends will possibly fund your entire RMD in early retirement. Age 72-80=3.65%-5%. As you get older you will surely have to sell some equities as the withdrawal %'s raise. You may want to simply “trim” some positions for the RMD balance rather than a total sale of a position.
IRS required RMD withdrawl %'s for 2022.
Age 72-80=3.65%-5%
Age 80-90= 5%-8.2%
Age 90-95= 8.2-11.24%
Age 95-100= 11.24-15.63%
Age 100-110= 15.63-28.57%
Age 110-120= 28.57-50%
Redeploy Dividends monthly or quarterly into a taxable account .or. fund your travels, gifts to kids & grandkids rather than simply leaving dividends in cash. Beat SP500 20% and Growth 30% could be switched depending on how comfortable you are with the volatility of growth stocks. Overall you should try to keep individual portfolios to less than 20 equities.
—------------------------------------------------
Taxable Portfolio for retirees
Swans - 50% “Sleep Well At Night”
Examples MA. V, LMT, CSCO, MSCI, AMZN, GOOGL
Growth - 50%
As a retiree, generally ETF’s will give you better exposure with less risk than stocks.
Growth Candidate Examples - Beat SP500 ETF’s IWY, IVW also other etf’s SPY, QQQ, SPYG, VUG, VBK, IWP, EFG, VWO, XBI, LIT, SPGP, IWF,
—-------------------------------------------------
As you can see I’m not a fan of typical Bond, International, Emerging mkts, small cap, large cap etc. type of portfolios.
Russ