On 5/11/2021 7:18 PM, DerbyDad03 wrote:
On Tuesday, May 11, 2021 at 6:39:29 PM UTC-4, Leon wrote:
On 5/11/2021 4:01 PM, dpb wrote:
On 5/11/2021 3:54 PM, dpb wrote:
On 5/11/2021 2:18 PM, Scott Lurndal wrote:
dpb writes:

My overall mix is closer to 60:40 when I categorize my dividend-paying
stocks portfolio as "fixed income" which purpose it serves at present
despite being equities. Being long-time continuous-dividend-paying
stocks, as a group they don't appreciate at the same rate as those held
solely/mostly for growth

Although if you enroll them in a DRIP, they do compound over time...

They are...and have at an annualized rate of about 7-8%.

OTOH, a portfolio concentrating on growth stocks may have doubled that
over the same time frame (with much higher volatility, too).

These are not serving that purpose, however, however tempting it is to
always go for the gains!

I have considered letting the dividends go to cash for the income stream
to satisfy the RMD, yes, but there are other places/ways in the overall
portfolio to do that, so, so far, I've just let them grow in situ in
order to keep roughly same balance.

Since they haven't done quite as well as the overall portfolio, they
have slipped some in the overall mix percentage; I did buy into one here
in the recent downturn to boost the overall up a little and also was a
real opportunity to raise the effective dividend rate by bringing down
the average cost/share a little.

--
I learned a few days ago that RMD can be rolled over in to a ROTH IRA
with no RMD from those IRA's

Another option...

If you donate to charities, you may be able to do the donations directly
from your IRA and not pay any taxes on the RMD. They are called Qualified
Charitable Donations. You just can't take possession of the funds. You
have to have them sent directly to the charity(s).

Plus side: Even though the RMD age has been raised to 72, they still
allow QCD's starting at age 70-1/2. They would have screwed a lot of
charities out of donations if they didn't make that exception.

So, all you "kids" out there...donate!



But 100% of that donation is gone...vs. only the taxable amount of a non
donation.

But if making donations anyway that would be helpful. I donate my time,
and a lot of it.