Living Off Stocks Before Retirement

Creating an income stream before retirement can be challenging, especially when it comes to managing assets like brokerage accounts. When considering using investments for income, it is important to have a deep understanding of one’s financial situation and liquidity. Maintaining a cash reserve that covers 12 to 18 months of living expenses is crucial to avoid selling stocks in a downturn, which could incur significant losses. A strategic approach includes evaluating various factors like income thresholds and potential capital gains taxes that may apply when liquidating assets.