I’m Pat Rosenheim, a.k.a. the PandA Trader.
We are in the income phase of portfolio management, partially (or totally) withdrawing each month from the available settled cash in our Roth IRA accounts. We are also depositing money weekly into our taxable accounts @ M1Finance, and monthly into our taxable account @ Fidelity.
I am changing the way withdrawals are made. First, DRIP will be enabled on ALL positions in our accounts at Fidelity. We also have accounts at M1Finance.com and DRIP is not supported there, dividends add to the cash balance which is automatically invested anytime the balance exceeds $10.00. Since some positions are expected to DRIP or reinvest distributions at a discount, it only makes sense to accumulate those positions. If a withdrawal is warranted, some holdings may be sold at potentially higher rates than they were acquired, resulting in more holdings being retained and thus, more retained earning power. This is a break from my prior practice of letting dividends accumulate as cash in each account and then withdrawing from that cash. I believe this will allow more value to be extracted from every investment.
Part of the cash in our Roth IRA accounts may be withdrawn each month on an ‘as needed’ basis. The available withdrawal amounts are shown on the cash tab on our Google spreadsheet.