Retirement income strategies - a book at bedtime

[scrumpyjack]

Whilst from an investment aim viewpoint the total return is most important, the ‘natural yield’ is also an important figure to take into consideration. Mostly directors, in determining what dividends to pay, are deciding how much is a sustainable amount for that company to pay out and will still allow the business to continue to grow and thrive in the future. To that extent the investor can consider that the natural yield is a prudent amount to draw.

Just because you’ve had a few good years of capital gains is not on its own a reason to ramp up your drawdown.

I have never really taken into account the dividend in deciding what to invest in, but the dividend (and its history) is one important indicator of the financial health of a business.

[xxd09]

https://www.bogleheads.org/wiki/Variabl ... withdrawal
Is this any good?
xxd09

[Urbandreamer]

https://www.bogleheads.org/wiki/Variable_percentage_withdrawal
Is this any good?
xxd09

Thanks.

I'm not sure that I read it the same way that you do, but at least we are reading the same thing.

The table is particularly confusing. Have you noticed that if you add "age" to "withdrawals" you always get 100? To me it suggests an assumption, similar to mine, of a 100 year life. I don't see the 10/20 year thing that you stated.

IF, I understand the table correctly, then it stops at age 99 and assumes that you can spend the lot at that point (as you will die at 100). For years before that it suggests what is safe to spend, depending upon your portfolio balance. In ALL cases it seems to suggest that you should be able to safely withdraw more from a portfolio that has more equities.

At least that is how I understand the table in the article.

[xxd09]

I agree but it’s a useful table to show that buy and hold is the main successful investment trope
You certainly make more with more equity but that’s for youngsters still working -increased volatility
I am 73 -well down the investment road so the older ages concern me most
The lesson I draw from these tables is to set your Asset Allocation so that you can sleep with it through thick and thin(what ever age you are)
It won’t matter too much what it is-70/30 to 30/70-staying the course is what matters
Invest in World Index Tracker Funds (Bonds and Equities)
That’s it

[JohnW]

IF, I understand the table correctly, then it stops at age 99

I think the way to use this spreadsheet is to assume an age at death, but as the years pass you refine that age up or down to make best use of your investments.

You certainly make more with more equity but that’s for youngsters still working -increased volatility

I think this spreadsheet uses historical data covering a longer period than most of us will be retired. So, perhaps we could say: 'you certainly MADE more with more equity'....past tense. The future may be different.

[tjh290633]

IF, I understand the table correctly, then it stops at age 99

I think the way to use this spreadsheet is to assume an age at death, but as the years pass you refine that age up or down to make best use of your investments.

You certainly make more with more equity but that’s for youngsters still working -increased volatility

I think this spreadsheet uses historical data covering a longer period than most of us will be retired. So, perhaps we could say: 'you certainly MADE more with more equity'....past tense. The future may be different.

Perhaps the thought should be that you will receive more income from equities, and it will increase with time, faster than inflation, but may fall from time to time for a while. Also maybe the age at death could be set at 120, just to be on the safe side.

TJH