Build Your Own Income Fund
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The idea behind dividend investing is building up a portfolio of stocks that is throwing off enough cash that you are able to live off of that cash without reducing your principle (most of the time). Easier said than done however. One article I came across proposes a strategy to recreate a monthly income mutual fund, without the high fees charged by the fund companies. Although the article was nothing new, I liked the authors suggestions to keep in mind when distributions are made – something I suspect many investors do not focus on.
Personally, I am not going to worry too much about this yet, but as I get closer to reaching my goal, I may begin to adjust my portfolio to ensure that my distributions are spread out throughout the year.
2 Comments on this post
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Khyron said:
This is a great! I loved this post and will reference it often. Too bad the amounts needed to pull this off are so steep.
September 29th, 2005 at 2:53 am -
The Dividend Guy said:
That is a good point. If your brokerage fees are high, then this can be expensive. If you are going to go this route, make sure you are using a discount broker with low fees.
September 29th, 2005 at 3:51 am
