ont, i wouldnt expect to live off of any dividend income from a CP portfolio.
With any mutual fund you have to sell units to get what you need. Living off the pile.
Not true if you are talking stocks though. Currently i invest for growing dividends, not having to ever live off the pile.
If you DCA over time with a CP, you should be able to redeem 4% to live off of, DCA in reverse.
I will be promoted up 2 ranks by the time I retire, giving me 60% of a higher income for pension. Currently I can live on my salary. Based on 60% of my current salary, and having no mortgage, no RSP contributions, and no TFSA contributions, my retirement take home income will give me more cash flow then I currently have now in todays dollars. No RSP/TFSA needed.
It will be extra money for me. I currently invest 100% stocks (dividend growth). I didnt panic and sell when the world was coming to an end, banking on the fact that people will always drink Coke, smoke, need deoderant, soap, toothpaste, eat at McDonalds, use a bank etc.
I am simply exploring the passive index fund/ETF strategy, and what way to divide my funds with a DB pension factored in.