Re: Paul Grangaard's Books
I have read Graangard's book and got pretty excited about his philosophy. Then I put a few posts here about it, and it was pretty much ripped by several posters. Here's what they don't like and I can't dispute them. You have 2 ladders, 1 for income and 1 for growth. So, probably about 50 - 50 in each. The growth ladder is stocks, the income ladder is, maybe, bonds. You use up the income ladder over a 10 year period. Meanwhile the growth ladder grows and grows for 10 years. And after 10 years, you have more than you started with. BUT, during that period, you gradually build your stock allocation from 50 percent to 100 percent. So, you never re-balance your portfolio.
Seems dangerous doesn't it ? His idea may be good theory, but what if you run into bad times from year 6 thru 8? Like we did from 2000 thru 2002. You'd lose a lot of money and would not have time to recoup.
What's the answer? what should you do ? what should I do? DON"T KNOW. But I do want to be conservative, more so that Graangard. And I do like the 4% rule .... only withdraw 4% per year.