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Learning to Invest / Portfolio Management


Subject:  Re: How much to expect Date:  8/27/2018  12:14 AM
Author:  TechCzech Number:  6958 of 7006

You should post this over on the Retirement Investing board. A synopsis of what you'll hear -

- To calibrate your expectations, a 4% annual withdrawal rate is a rule of thumb used for a safe withdrawal rate. Search for Bill Bengen for a history of where this figure came from, he was the first to study it and write about it.

- Per that, your savings will generate about $1K per month.

- The 4% withdrawal rate assumes you're in at least a 50/50 blend (equities to bonds). Most folks over there are much more tilted toward equities.

- Mentioning putting your money in dividend stocks will start a "spirited discussion". There are two camps on this, people who like the income stream approach, and the opposing camp who believe you should invest for best returns and sell as needed for the draw.

- Your broker ... yeah probably what you're observing and/or worse. Don't know if you're with the type steering you to front end load funds, or 1+% annual management fees. But either would be a huge drain on your returns. If it's 1% annual fees, that's one of the biggest sleight of hands in marketing. That's actually ***25%*** of your revenue stream.

Hope this helps and hope you do well
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