Today’s Hack
Dividend investing has long been a staple in retirement planning, providing a predictable income stream for many retirees. However, the landscape is shifting. The concept of incidental income, which relies on the rebalancing of a portfolio and the cash flows it generates, is gaining attention.
This week we want to tackle the question: Is dividend investing dead? A recent article came out explaining that in today’s economy, it’s possible that dividends may not be the ideal way to invest so we want to explore that idea.
We’ll look at the evolving landscape of dividend investing and this emerging concept of incidental income. Discover the potential risks and rewards of relying on stock sales instead of dividends to fund your retirement. Phil also discusses the tax implications, management complexities, and the sustainability of these strategies.
Here’s some of what we discuss in this episode:
0:00 – Intro
1:20 – Incidental income
4:14 – Tax implications
7:38 – More active management
10:40 – Corporate taxes
If you have any questions about what we discussed in this episode, reach out and we’ll be happy to set up a time to talk.