Currently VTI 70% and VXUS 30%. The problem is that I can really hit my target number of 1.25M sooner than later and I want to reallocate to dividends (call it at 4% so $50k/year gross), and live off the dividends without touching the principal. This is in my taxable brokerage, and my 401k is healthy. Ijust plan to retire earlier than 55.
I know there’s a 4% withdrawal framework, adjusted for inflation, but I’m not really on board with that idea, especially if I retire much sooner. Reallocating to dividends will definitely also eat away at the gains via taxes.
How should I approach this? How have you all approached this? We talk about the accumulation phase often but not so much the retirement phase, and more specifically, taxable brokerage stuff.
Or is this the wrong subreddit to ask that question? Apologies if it is.