Living entirely off portfolio dividends without touching the principal has real appeal, but Craig at Sage Rutty outlines four ways it can fall short. Dividend income is forced and arrives on its own schedule regardless of your tax planning needs, dividend-heavy portfolios can become concentrated in certain sectors, dividend rates can get cut during a downturn, and a dividend rate that consistently outpaces spending can mean quietly underspending and leaving money on the table rather than using it during your lifetime.
Comments