gabrewer
Dryer sheet aficionado
Hello all;
I am currently reading Level 3 Investing by James Cloonan (founder of AAII). Yes, they inundated by inbox enough times that I finally took the bait. The basic underlying premise is of course nothing new -- stocks outperform other asset classes in the long run. I do find his take on how to take withdrawals during retirement to be interesting. Similar to the bucket approach he advocates keeping 4 years (or 3-5 depending on your tolerance) in safe investments. However he views this as "insurance" -- only to be touched when the stock market is down. Otherwise withdrawals are to be made from the long-term stock portion of the portfolio in up years. Another interesting aspect is there is no "middle bucket." He views long term bonds as a waste of time, contending that on an inflation adjusted basis they have been long-term losers.
I guess I'm just interested if anyone here is familiar with or read about this approach and what opinions or criticisms there might be of it. At first glance it does have a certain intuitive logic -- as does the bucket approach, asset allocation, various glide paths, living on interest and dividends, etc.
Thanks for any and all feedback; hope everyone has a good Labor Day weekend!
I am currently reading Level 3 Investing by James Cloonan (founder of AAII). Yes, they inundated by inbox enough times that I finally took the bait. The basic underlying premise is of course nothing new -- stocks outperform other asset classes in the long run. I do find his take on how to take withdrawals during retirement to be interesting. Similar to the bucket approach he advocates keeping 4 years (or 3-5 depending on your tolerance) in safe investments. However he views this as "insurance" -- only to be touched when the stock market is down. Otherwise withdrawals are to be made from the long-term stock portion of the portfolio in up years. Another interesting aspect is there is no "middle bucket." He views long term bonds as a waste of time, contending that on an inflation adjusted basis they have been long-term losers.
I guess I'm just interested if anyone here is familiar with or read about this approach and what opinions or criticisms there might be of it. At first glance it does have a certain intuitive logic -- as does the bucket approach, asset allocation, various glide paths, living on interest and dividends, etc.
Thanks for any and all feedback; hope everyone has a good Labor Day weekend!