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I will be 65 in 2 months and am in the throes of trying to figure out how to retire foolishly. It has been my experience that on the general subject of retirement more than 90 percent of the advise available is on how to accumulate enough assets to retire on and well under 10 percent of the advice is related to how to manage ones retirement, specifically on how to make sure ones nest egg lasts as long as the nest egg owner. The best advise seems to be to assume that one will live forever and withdraw from the nest egg at a rate that will allow this. The concern is how does one manage the nest egg to accomplish this. One obvious strategy is to not touch the principal. This could be accomplished by investing in dividend yielding investments and living off the dividends or investing in growth stocks and withdrawing only as much as the growth allowed. With the instability of the market one needs also to be aware of cycles and try to minimize cashing in when the market is depressed. So, what are the relative advantages and risks of A) living off the dividends vs. B) living off the growth? In my own case I have at least started off in the direction of plan A, living off the dividends. I currently own ten stocks with dividend yields over 5 percent with nine of them paying between 7.1 and 9.7 percent. These ten stocks comprise roughly half of my nest egg and in the other half I own stocks that range from "conservative growth" to "speculative growth." In other words I am trying to have the best of both worlds. The high yielding stocks are in the REIT or finance area and I have tried to assure myself that the companies I own are in good shape financially and will be able to continue to pay the high dividends. Some are preferred stocks of companies that also have high yielding common stock so that gives me some comfort that the preferred yield is sound.

I would appreciate any comments re this approach as I am totally new to this. Don't be concerned about hurting my feelings. I fully appreciate that my long-range financial health is much more important than a bruised ego, so if you feel I am way off base, please say so and why.

If this has been fully discussed before here please point me to such discussions. Also I am totally willing to share what my investments are in and why I have invested there if anyone is interested.
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