Quick Tip for Generating Cash in Your Portfolio

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.

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