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iShares Canadian Financial Monthly Income ETF (FIE)
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iShares S&P/TSX Composite High Dividend Index ETF (XEI)
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iShares Diversified Monthly Income ETF (XTR)
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iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY)
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Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY)
Q: Hi,
This is follow up to James' question about living off the dividends from these ETFs.
ETFs = XTR,FIE,XEI,VDY,XHY
Suppose I convert my portfolio(s) over to equal weights of these ETFs and start living off the distributions ~ 5.5% yield. I'm ok with the tax situation. I can account for inflation.
What other risks am I taking? When we see another 2001 or 2008 what is the possible impact to the ETF values & the distributions?
I'm not looking for a guess (and certainly not a promise) as to what will happen in the future. I'm looking for a list of additional things that I need to consider about this strategy for my own risk management before pulling the plug on my current working life. A handful of "what-ifs" to consider would be great.
Thanks,
Gord
This is follow up to James' question about living off the dividends from these ETFs.
ETFs = XTR,FIE,XEI,VDY,XHY
Suppose I convert my portfolio(s) over to equal weights of these ETFs and start living off the distributions ~ 5.5% yield. I'm ok with the tax situation. I can account for inflation.
What other risks am I taking? When we see another 2001 or 2008 what is the possible impact to the ETF values & the distributions?
I'm not looking for a guess (and certainly not a promise) as to what will happen in the future. I'm looking for a list of additional things that I need to consider about this strategy for my own risk management before pulling the plug on my current working life. A handful of "what-ifs" to consider would be great.
Thanks,
Gord