I'm getting to a point where I need turn my assets into cash flow. (May 2012 time frame)
Maybe the forum has some suggestions. My Goal is to generate at least $1000 in cash flow after May 2012 to cover our future budget. Our current tax rate is 25% and we will eventually be in the 10% bracket after we quit work.
Current cash flow:
$475 monthly VA compensation
Current assets:
$75K 401K self
$20K 401k wife
$14K Roth IRA wife
$10K Roth IRA self
$4K Coverdell son
$12K Coverdell daughter
$145K Equity trading account
$13K Cash
Yet to be realized assets:
$103K (after tax earnings/savings up until May 2012)
More about me: http://earlyretirementextreme.com/forum ... phoenix-az
Thanks!!
Cash flow for dummies
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Robert Muir
- Posts: 280
- Joined: Thu Jul 22, 2010 10:15 pm
Not sure why this is in the Admin Stuff forum - perhaps Jacob can move threads.
As for drawing cash flow from assets, there are lots of different methods and ideologies.
- Separate your portfolio into various classes such as income, growth, hedges, etc.
- For income, you can select dividend fund, individual dividend stocks, bonds, tax-free bonds, short term investment funds (hedging against future interest raises), etc. etc.
A fully encompassing answer to your question would take up several books. Your decision is to either make the choices on your own or to hire an adviser to make the choices for you. If the former, then you'd better get started reading:
http://earlyretirementextreme.com/day-1 ... remen.html
Jacob posted a list of his recommended investment education books, but I can't find it at the moment. I'll post it if I do.
Edit- Found it! http://earlyretirementextreme.com/start ... sting.html
Regardless of your income decision, you'll want to diversify. You don't want everything in dividend stocks when equities drop into the basement. Like the way Jacob is doing it, you'll want to reduce expenses as much as possible and be able to pick up additional income at any time.
As for drawing cash flow from assets, there are lots of different methods and ideologies.
- Separate your portfolio into various classes such as income, growth, hedges, etc.
- For income, you can select dividend fund, individual dividend stocks, bonds, tax-free bonds, short term investment funds (hedging against future interest raises), etc. etc.
A fully encompassing answer to your question would take up several books. Your decision is to either make the choices on your own or to hire an adviser to make the choices for you. If the former, then you'd better get started reading:
http://earlyretirementextreme.com/day-1 ... remen.html
Jacob posted a list of his recommended investment education books, but I can't find it at the moment. I'll post it if I do.
Edit- Found it! http://earlyretirementextreme.com/start ... sting.html
Regardless of your income decision, you'll want to diversify. You don't want everything in dividend stocks when equities drop into the basement. Like the way Jacob is doing it, you'll want to reduce expenses as much as possible and be able to pick up additional income at any time.