No. of Recommendations: 1
First off determine the average cost of your management company - say for example you are getting 4.0% (before taxes) and paying 1.9% for management. So your current portfolio is returning 5.9%

There is a balance between return and risk. In our case, we have been living off our portfolio since May 1, 2008. During the time our portfilo has grown (net after taxes and withdraws) at a compound rate of 5.78%. Our withdraw rate has varied but the average is 2.86%.

I manage the portfolio - we are almost exclusively in Vanguard mutual funds. They have very low fees and a wide variety of funds. I am not satisfied with their international funds, so we have small portion in a Matthews Tiger Pacific (MAPTX). Our largest investments are VFIAX, VWENX, VHCAX and VWEAX which total over 70% of our portfolio. We have zero sovereign debt, except as included in managed funds such as VWENX.

If you want to go this route, you might want to spend some time checking out -- they have excellent tools for comparing Fund X vs Fund Y. In addition to risk & return data, you can look up tax efficiency of funds. I make sure all my comparisons are for the exact same time periods. Schwab's 3 or 5 year return time period is unlikely to be the same as Vanguard's.
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