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Subject:  Re: 3% is the new "4% rule"? Date:  10/8/2013  9:58 AM
Author:  jgc123 Number:  73471 of 88771

I think it is a legitimate inquiry even if you don't have 1% management fees. My review of the latest dividend champions showed only 4 or 5 stocks out of 105 with a yield above 4%, and an average of 2.58. The dividend etfs on my watch list, sdy, dvy, schd and vig all have yields below 4%.

In the real world, my 91 year old father's port that I now have to try to manage because of his rapid descent into senility in the last two years, is yielding about 4.8%, but bonds are expiring and I am searching for safe ways to replace them.

Both he and I have reits that are yielding 6% or more, but there are risks there.

Without going into real life numbers, a person hoping to retire on $1M at 4% might seriously consider working another few years with an eye toward retiring on $1.5M at 3%, or some other number in between.

I am presently using 3.6% as my estimated safe withdrawal rate.

Also, "A man's gotta know his limitations.' I seem to be better at earning a living than at investing. 3% might be a smart goal for those who can achieve it and who are not above average investors.
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