Creating Another Retirement Income Stream

What if I told you that there’s an easy way to create a healthy retirement income stream from assets well above and beyond the sub-2% dividends offered by many Vanguard mutual funds?

You might say that I’m foolish and that one should “never touch capital.” Hold your assets tight and live off of the proceeds. As someone who no longer receives a regular paycheck, I can appreciate the concepts of passive income streams and cash flow.

Here I’ll show you how to automatically shift money from mutual funds held in a taxable Vanguard mutual fund or brokerage account straight to your checking account. 

Creating Another Retirement Income Stream

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Automatic withdrawals from mutual funds can take away the second-guessing and market timing that is bound to come with frequently logging in to sell shares to provide that retirement income stream.

Why Automate Withdrawals from a Taxable Account?

If the market drops exceptionally low, you could always choose to pause or cancel the withdrawals until the market recovers, as long as you’re not completely reliant on the periodic distributions to support your desired lifestyle.

The answer is a complex one, and it depends on a number of factors, including your retirement spending needs, other retirement income streams, time horizon, and tax implications.

How Much Should One Sell?

There are a few tax considerations for early retirees and “normal” retirees later in life. 1. Capital Gains Taxes 2. The 0% Capital Gains Tax Bracket 3. Affordable Care Act Subsidies

Tax Considerations

When I was doing some end-of-year tax planning, I constantly updated the set of spreadsheets that helps me pinpoint the optimal tax strategy for me and my income sources.

Do-It-Yourself Tax Planning

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