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Capital Gains VS Dividend Stream (Retirement)
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Hi Everyone
Been mulling over this topic in my mind for quite some time. I need to get it off my chest. I have been listening / reading different material about investing for retirement. The common consensus is that as you reach your preservation age or retire earlier you access your super / other shares you have outside of super and sell them down to produce an income.
Now the problem I have with this is we do not have an expiry date and I don't know how long I will live for and I could potentially sell my portfolio to 0$ and still live for another 10 years. I have read another strategy that instead of selling down to produce an income; to invest in more individual stocks / ETF's / LIC's that produce a dividend income alongside capital growth to become an income stream. This in turn will continue to generate Capital Gains (by not selling) and still receive income to live off (dividends).
What does everyone think? Please let me know if I did not articulate myself very well. Still learning the ins and outs of all this.
Top Comment: It's all about overall investment return. How you achieve that doesn't really matter. It can be 5% return in capital gains, or 5% returns in dividends, or a mix. Either way, it's the same amount of returns. If you compared two companies that are identical except for the fact that one pays dividends and one doesnt, the one that doesnt pay dividend will have higher capital growth. If both generate a 5% return, it doesn'tmatter what form that comes back to you in. What you are proposing is simply avoiding selling down assets - it doesn't really make a difference other than how you access the cash. Simplistic scenario: If you have a portfolio of $1m, it earns $40k in dividends and $10k capital growth. You only take the $40k dividends. Your portfolio is now worth $1.01m If you have a portfolio of $1m. It generates $50k in growth. You sell down $40k of shares. Your balance at the end is $1.01m Either way, the return is $50k. Either way you draw $40k. Either way, you are also left with $1.01m at the end. The only difference is tax treatment.
Watch: PM dismisses poll showing support for capital gains tax : newzealand
Main Post: Watch: PM dismisses poll showing support for capital gains tax : newzealand
[Orient Capital] Best value dress watch at $100?
Main Post:
Hi All,
I'm really interested in the Orient Capital. http://orientwatchusa.com/collections/mens-watches/classic/ug1r003w
I'd love to get some feedback and insight from other owners or people who've tried on the watch.
I'm primarily interested in it's build quality, it's accuracy, and it's comfort.
It looks quite thin but at 40.5mm width, might be a tad big, but noticable big comfort wise?
Also, I see the lug width and strap width to be 22mm. Again this looks to be a tad bit wider than most. Still comfortable?
To me personally, comfort is when you forget you're wearing a watch, you don't feel it there.
I appreciate any responses!!!
Top Comment:
Orient's design can be somewhat uneven, but the Classic line is gorgeous.
Quartz ain't my thing, but I suspect that'll be as accurate as any modern quartz movement, which is to say far more accurate than any other option.
*spoiler* World Cup watch party at Capital One Arena…..
Main Post: *spoiler* World Cup watch party at Capital One Arena.....
Top Comment:
Why didn’t I hear about this 😡 has to watch on my lame laptop