|
The Motley Fool Discussion Boards
|
Previous Page | |
|
Investing/Strategies / Retirement Investing |
||
|
URL:
http://boards.fool.com/i-think-it-is-a-legitimate-inquiry-even-if-you-30911628.aspx
|
||
| Subject: Re: 3% is the new "4% rule"? | Date: 10/8/2013 9:58 AM | |
| Author: jgc123 | Number: 73471 of 84057 | |
|
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. |
||
| Copyright 1996-2017 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us | ||