Shortly after my last post on passive dividend income, I ran across an interesting idea from GoCurryCracker to tap dividends in IRAs before age 59.5 without penalty.
If I sell $26,000 worth of stock, move that cash into Roth accounts, and then buy $26k worth of stock… I end up owning about the same number of shares just in a different place.
So when we have $39,000 of annual dividends reinvested in tax advantaged accounts, we simply sell an equivalent number of shares in our taxable brokerage account. A clever early retirement cash flow solution and the end result is we own the same number of VTSAX shares.
Mrs. Dresspockets is still employed so we don’t need the extra cash flow currently, but I filed this idea away to use with the draw down of her 457b account.
