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But you insist that the long term dividend growth must be at least 8%

8% per year is a low dividend growth rate. You have to be able to maintain a reasonable portfolio, not an outstanding one.

If you are uncomfortable with assuming an 8% per year growth rate, find out what you would consider reasonable and adjust the withdrawal amount according to the income allocators. Remember, the issue here is cash management. Some investments have high yields, some have lower yields but rapid dividend growth.

Don't get caught in the trap that the stocks in your portfolio remain the same. You have to monitor dividend quality. You have to replace some stocks from time to time.

The term is indefinite. So long as you are able to meet the requirements of the two portfolios, you will be able to withdraw the specified amount (plus the specified inflation rate).

Have fun.

John Walter Russell
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