Your withdrawal strategy strikes me as easier to implement with an accumulating ETF. Otherwise, you may withdraw more in the first year (dividends + fund_value/25) and have less in the last year. If all you do is keep the dividends in cash in the brokerage account, you just make it harder on yourself to figure out how much to sell, and that amount will differ in months with & without dividend distributions (unless you plan to withdraw the whole year's amount at once, but why?).
If I were you, I would get the accumulating ETF and sell monthly according to your strategy. You can calculate the monthly amount to be withdrawn at the beginning of every year to give you some stability month-to-month while avoiding the timing issue of a large annual sale.
If I were you, I would get the accumulating ETF and sell monthly according to your strategy. You can calculate the monthly amount to be withdrawn at the beginning of every year to give you some stability month-to-month while avoiding the timing issue of a large annual sale.
Statistics: Posted by HKexpat — Thu Feb 15, 2024 3:29 am — Replies 3 — Views 996