Aug. 2 at 6:10 PM
$ULTY $MSTY $CONY $NVDY PLTY
Let’s say you made
$100,000 in dividend income a year in a taxable account. Assuming you plan on living off dividends and paying the taxes on unqualified distributions which has a higher tax rate from 20-30% tax rate on “distributions”. This is how you can break it down.
$100,000 a year in dividend income
$30,000 a year for taxes
Leaves you
$70,000 a year for lifestyle, expenses and your choice of reinvesting dividends to increase your income.
So if you take out dividends each month at a 30% tax rate by the 5-6 month, you’ll have enough aside for your taxes and expenses. The remainder half of the year you just have to worry about paying monthly expenses, and your choices of reinvesting dividends to further grow your income machine !!
