Re:If You’re So Successful, Why Are You Still Working 70 Hou...
by mywittyname on Wednesday September 08, 2021 @06:10PM
(#28463675)
A handful of Vanguard funds (VIGAX, VITAX, VFIAX, VWNDX) and the like.
The GP was talking solely about dividends, but most funds will re-balance and distribute long-term capital gains to you if you wish. If, in 2020, you held $1.5MM in a mix of those funds and instead of reinvesting dividends, long-term, & short-term capital gains, and instead redirected them to your bank account. You'd have something like $80k distributed and your market value would have increased to like 1.7-1.8MM.
Not that 2020 was a typical year or anything. But the past 8 or so years have told a similar story.
The GP was talking solely about dividends, but most funds will re-balance and distribute long-term capital gains to you if you wish. If, in 2020, you held $1.5MM in a mix of those funds and instead of reinvesting dividends, long-term, & short-term capital gains, and instead redirected them to your bank account. You'd have something like $80k distributed and your market value would have increased to like 1.7-1.8MM.
Not that 2020 was a typical year or anything. But the past 8 or so years have told a similar story.