No. of Recommendations: 3
So you start off with $100K, take 8% for 5 years, now you have $25K. You go from $8000/yr (8% of $100K) to $750/yr (3% of $25K).

The risk is too great. Sometimes there is no way to do what we want to do.


But if you were drawing the $8000 because you were going to start getting $8000 in income from another source, like SS, after 5 years, you are still $750 a year better off than when you were drawing the $8000. And if you have other sources of income, like a pension that you were drawing on the entire time, then things might still be okay.

It depends on what your objective is.

AJ
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