Hello,
I am exempt from taxes (Puerto Rico Act 60) on capital gains but not on US-sourced income (dividends from US-based equities and funds).
I would like to park a large part (maybe 75%) of holdings currently in cash yielding 0.65% in a relatively safe portfolio with target growth of 5-10% a year and draw 5% a year as capital gains for ongoing expenses.
BRK comes to mind and will definitely be at least part of holdings (like the exposure to AAPL without the dividends) but would you caution against making it 100%? I was thinking more 50% balanced out by one other holding.
SPY and VTI both pay a dividend of 1.3%. Is this because the SP500 averages about 1% dividend? Could anyone please suggest something very similar but which reinvests gains rather than pay a dividend?
Thank you very much!
Submitted June 10, 2021 at 10:35AM by compoundluck https://ift.tt/3iykcJo
