No. of Recommendations: 0
Surely, you can reduce your standard of living--but, in a prolonged downturn, how long do you WANT to do that? You are retired, after all. Why impact your "sleep factor"?

With that being said, [and not checking back to the start of the thread :)] if this is early retirement, you are not entirely dependent on the "safe withdrawal rate for the long future" situation. If you want to go to Europe, maybe you work for a few months to build your vacation fund. Or consult enough to pay for your insurance needs each year. There are a lot of possibiliites when you are young & healthy to do what you WANT to do and not what you HAVE to do. Enjoy doing that dinosaur dig at subsistence compensation for a few months, etc. I'm hoping to be in this situation in 8 years. Good luck!

There are investment vehicles that can serve as bond substitutes for those without a sensitive sleep factor. (true Fools should not read any further, or at least cover your eyes!) For example, the REIT sector is really battered right now; dividend yields are higher than bonds or CDs, and there is the potential for capital appreciation [or loss]. Busted convertibles often pay a high rate, and can have a great YTM; some of these will mature in a few years. Limited partnership distributions can often be lucrative. So, you can generate current income even with a speculative vehicle.
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