I am a retiree with a dividend portfolio. The dividend income has been somewhat steady even during market downturns. It is sort of an annuity. I cannot find anyway to take dividend income into account. Should I set it as an annuity and decrease the return on stock by that amount???
@sandhu681 Dividend income is some portion of the expected return on stocks and, if held in a tax-deferred or a Roth account, there's really nothing else you need to do about it; however, if held in your regular taxable investment account, you need to go to the Financial Assets > Taxation page and specify what portion of the expected return on stocks is associated with dividends so that PRC handles the taxes correctly.
Stuart
Thanks Stuart; For this question I am referring to assets in Taxable account. This table you have referred does address the tax issue However my question was a bit different, due to dividends I do not need to dip into the portfolio. However in the Tabular projection it is showing that I need to take out N dollars each year. The N dollars is less than my dividend amount. Should I just mentally accept that unless N is more than Dividends I am not dipping into portfolio
@sandhu681 Are you aware that on the Financial Assets > Asset Class Taxation page there's an option for you to NOT reinvest the dividends and, instead, deposit them in your cash account where they can be applied against current expenses? If your dividends are greater than your negative cash flow, this will prevent any withdrawals from your taxable account.
Stuart
That is perfect Stuart. What a great product. Thanks
