Super-fast blog today! If you are looking to generate regular payments out of your portfolio and find yourself in a quandary of what securities to sell, try this: Turn off the dividend/interest reinvestment feature in your mutual funds. Those distributions will go to cash and can build up your liquid position without selling shares.
Caution: Doing this will slow the growth of the portfolio because you are not buying new shares regularly with the reinvestment. But, for some clients I have noticed that turning off the reinvestment feature lets them accumulate almost the right amount for their Required Minimum Distributions if they are of that age.
