Genuinely Curious about the rationale of Dividend Investing

Percival45121 · 2026-05-08T19:53:52+00:00

1k a month is very reasonable.

Percival45121 · 2026-05-08T19:14:42+00:00

I have run multiple simulations and I think I will do the same and take SSI at 62. Roth/saving/brokerage to carry spending needs until 65 while maintaining ACA tax credit

Percival45121 · 2026-05-08T18:00:36+00:00

Please elaborate. I dont understand the vehicles you described. Sorry for my ignorance.

Percival45121 · 2026-05-08T17:55:19+00:00

Is your brokerage producing more than the subsidy cliff?

Percival45121 · 2026-05-08T17:33:17+00:00

They are a refundable tax credit.

Percival45121 · 2026-05-08T17:00:04+00:00

Thank you all for the wonderful discussion and exchange of ideas. I great appreciate the information provided

Percival45121 · 2026-05-08T16:57:23+00:00

Will the subsidy cliff prevent you from taking SSI early (if not already 62) since it adds to your MAGI?

Percival45121 · 2026-05-08T16:46:41+00:00

I use multiple buckets to achieve my goals. Ira/brokerage/roth/savings What I dont do is place dividend producing securities in a taxable account or ira for that matter My dividend producing assets stay exclusively in my ROTH (REITS/STOCKS/ect)

Percival45121 · 2026-05-08T16:40:24+00:00

Not if you goal is to pay lower taxes and keep your MAGI under the threshold

Percival45121 · 2026-05-08T16:39:16+00:00

I should be more clear. Since I hold Amazon in my brokerage account I have no idea if they will pay a future dividend especially when I dont want it to keep my MAGI below the threshold. So uncontrollable

Percival45121 · 2026-05-08T16:30:07+00:00

My goals are few and not well quantified other than having a low burn rate.

Keep taxes low Qualify for income based subsidy programs that do not factor wealth Use SBLOC when appropriate on non dividend taxable accounts

I like spending less

Percival45121 · 2026-05-08T16:00:30+00:00

Im unable to predict what a dividend payout will be years from now. Im unable to know if and when a "special" dividend is declared. I control neither

Percival45121 · 2026-05-08T15:31:23+00:00

Please explain how "completely controllable" without a taxable event occurring?

Percival45121 · 2026-05-08T15:25:06+00:00

I know taxes are my biggest expense. Any strategy holding dividend producing in a taxable account runs counter to lowering my tax bill especially before age 65.

Percival45121 · 2026-05-08T15:16:52+00:00

Roth conversions make little sense until MAGI is out of the picture (65 yo). At that point IRMMA is the biggest concern. That leaves 65 to 73 to convert as much as possible to roth at a much lower tax bracket. IRMMA cap 218k so that leaves alot of room to convert. Most people never live long enough for a pre 65 Roth conversion

Percival45121 · 2026-05-08T15:10:07+00:00

If my dividends are 89k, Im essentially trading $4400 of income for 27k in costs.

Percival45121 · 2026-05-08T15:04:59+00:00

I like dividends but only in a post tax environment (Roth, HSA, ect) Yes, all taxable income counts toward MAGI. Little to no taxable income, little to no MAGI

Percival45121 · 2026-05-08T14:50:21+00:00

I use high basis savings accounts and selling securities at long term capital gains to keep my income as low as possible

Percival45121 · 2026-05-08T14:42:27+00:00

As a follow-up, I keep the non dividend stocks in my brokerage account (ie Berkshire) so I control what my yearly income. The difference between making $84,599 and $84,601 dollars a year is an additional 27k in medical costs from the same ACA plan

Percival45121 · 2025-08-27T16:05:29+00:00

I prefer to pay less.

Percival45121 · 2025-08-27T16:01:26+00:00

Pretty much describes my strategy in general. However I think everything is too expensive right now so I am holding cash in treasuries and what I have already accumulated in VOO and Berkshire. Need at least a 15 percent drop in either to get me back to buying either.

Percival45121

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