I need income." The hungry investor cries out for help, and the broker is there in a second with an income product. Often, one that is injurious to financial health. There is a universal yearning among retirees for securities that make handsome dividend or interest payments. It is entirely wrongheaded. No, you don't need income. You need cash. It is a very different thing. Income is something the IRS needs you to have, so that it can take it away from you. You're better off without income, at least in a taxable account. Say you have $1 million invested and delivering a return of 6.5% a year. Putting aside the little matter of inflation, you can pull out $65,000 a year without dipping into principal.
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