Income ETFs are designed to pay out either dividends or distributions regularly, sometimes quarterly, or better yet, sometimes MONTHLY.
But, as we receive those distributions, Yay! for more money, but Boo for tax implications. I’d be cautious to be using all of those funds expenses because some of that income should be set aside for capital gains taxes. We will review tax rates to keep in mind, as well as create a preview of what our model income portfolio and usage might look like.
In this article, I will talk about:
- My Hedged Income Portfolio — A Review
- How to Manage Cash Distributions
- Tax Considerations
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