culcha:A dollar in dividend is exactly the same as a dollar in capital gains. What counts is the portfolio's CAGR.You say: "The first approach seems to assume that an investor will need to accumulate a portfolio of a certain value (your "number") that you will then live off by selling a fraction of it over your retirement years. The danger to be avoided is one in which you outlive your money; and that is to be met by using a Safe Rate of Withdrawal from your investment portfolio. Absolute perfection in this would be to have your portfolio exhausted right at the very time of your death; otherwise, the thought is that you might have saved and denied yourself too much in your earlier years."With the dividend approach you almost guarantee that you have "denied yourself too much" because the capital will be intact when you die.I use a mixed approach, maximizing CAGR, or at least trying to. I simply take out as much as I need and put the rest to work as best I can.Denny Schlesinger
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