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Old 02-06-2010, 10:09 PM   #41
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Since he is realizing less that $250k/year, can't we assume his taxes won't go up, per Obama's promise?

Originally Posted by jIMOh View Post
Are you taxing dividends at normal income rates or current (Bush tax cut) reduced rates? Another thing to factor in.

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Old 02-07-2010, 04:02 AM   #42
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Originally Posted by floatingdoc View Post
The dividend can drop to 2 cents per share and I still have enough to pay expenses (this has never occurred in the last 23 years but you never know)
If that is the case than your plan is quite survival, a lot more than mine.Now with the caveat that I just eyeballed the number used a calculator and didn't break out a spreadship, I think my initial comment is correct for normal economic environments this is a reasonable plan. At .02/share you'll be withdrawing roughly 44K a year on portfolio worth 1.68 million. This is a withdrawal rate of 2.6% which despite a sub optimal AA (IMO) is significantly below the 3.5-4% we normally use around here.

So you have my blessing . Come back in 7 years and lets us know how it is working out...

Now I won't go as far and say I like it but in theory in should work. I think it is worth keeping in mind that over the last several decades millions of American have retired with no or modest pension, assets in the several hundred thousand rang, and invested in nothing riskier than a few year CD and survived. Some of the like my dad even did so at early age 55.

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