No. of Recommendations: 0
"... but also secure monthly income to supplement her decreased pension and Social Security income"...

Would be interested in what you all think of an all stock income strategy as follows:

1. Put all your money in a broad based mutual fund, like Vanguard's Total Market Index Fund.

2. Draw a monthly fixed amount equal to a set annual percentage. Say you take a 5% annual draw in monthly installments.

3. If your fund has earned more than that year's inflation rate plus your fixed rate draw, the excess would be available to supplement income.

Under this scheme, if inflation for the year comes in at 3.5%, your fund would need to grow at 8.5% to support a 5% draw AND maintain the purchasing power of your capital. Anything over 8.5% is available to supplement income and/or grow wealth.


Good Luck.

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