How long will your fixed asset position take you?

[audreyh1]

I don't count dividends, just like I don't count interest income either. I'm using present value on my living expenses and I'm just assuming that the dividends and income will help offset inflation in my living expenses making it a wash.

Of course if someone is living off stock dividends only, then the point is mute. But gosh - dividend cuts seem like a real possibility as companies deal with the credit/financial crisis.

Audrey

 

[2B]

I don't count dividends, just like I don't count interest income either. I'm using present value on my living expenses and I'm just assuming that the dividends and income will help offset inflation in my living expenses making it a wash.

Of course if someone is living off stock dividends only, then the point is mute. But gosh - dividend cuts seem like a real possibility as companies deal with the credit/financial crisis.

Audrey

My only individual stock (Bank of America) cut its dividend by 50%. The stock price is down at least 30% in the last week. I don't count dividends in my normal thought process.

I like your idea of discounting inflation and interest income. I think I'll run my numbers that way and see how they compare. The problem I see is my pathetically small pension isn't COLAd so it would not be properly discounted. SS is so that should be covered.

 

[audreyh1]

Yeah I just consider it all in terms of "present value" numbers and figure that any income earned on the cash/fixed income will cover inflation.

Audrey

 

[rickier55]

I went through earlier this week (Monday Evening - I wonder what trigered me to do this) - Have around 8-9 years in Govt bonds. But DW will have a small pension in 3 yrs. And be eligible for SS in 6. Those combined more than cover our current style of living (assuming around 3.5 avg inflation)- So we should be fine (repeat to myself ten times) barring any unforeseen happening.

Of course, my equity - bond distribution will then be around 95 to 5 (equities to bonds) so market better start kicking in. *g*.

Rick