Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Old 12-18-2008, 09:43 PM   #21
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
Originally Posted by FIREdreamer View Post
First time I heard of the "norwegian widow" was from Unclemick. Don't know if he made her up or got it from another source. My understanding (Unclemick will correct me if I'm wrong) is that the Norwegian widow is a romanticized personalization of the good ol' days dividend investor. Market's up, market's down, no matter, you buy and hold dividend-paying investments and the dividend check arrives in your mailbox like clockwork. You live off the dividends and leave the working capital untouched. Off course nowadays the Norwegian widow might be invested in Wellesley and her dividends might be electronically rolled into her money market fund. She doesn't have to wait by the mailbox anymore when it's -30F outside.
My understanding is that the widow is based on a real person that Uncle knew in his *ahem* younger days who did indeed wait for that dividend check. Or maybe she was a streetwalker...
"All animals are equal, but some animals are more equal than others."

- George Orwell

Ezekiel 23:20
brewer12345 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 12-19-2008, 02:19 AM   #22
Thinks s/he gets paid by the post
Texarkandy's Avatar
Join Date: Feb 2008
Posts: 1,281
Originally Posted by brewer12345 View Post
Hogwash. What you really want to do is have it all omnverted to silver certificates, bury them in a coffee can in the backyard, and dig up only what you need each month. Safe as houses, as the British say.
Or maybe - (dare i say it?) - a variable annuity!

The best thing to do with your money is to diversify. Now, what we're going to do is take half of it and bury it in an old pickle jar in the backyard. The other half, we'll take to the dog races and bet on the one who does his 'business' before the race." Jeff Foxworthy

Retired 2009!
Texarkandy is offline   Reply With Quote
Old 12-19-2008, 04:55 PM   #23
Thinks s/he gets paid by the post
Join Date: Jul 2005
Posts: 4,316
Originally Posted by haha View Post
That works very well as long as you foresee the downturns. I wold find it very nerve-wracking.


Hopefully not, though I did hit this one. The idea is to pull out cash when the market is in line with, or higher than, my retirement expectations. So if the market starts on target and then jumps 30% in one year you can take out 3 or more years of living expenses. No guessing involved.

I went ahead and started with a pile of cash just to cover the first few years of retirement and try to avoid the worst case of a downturn just after retirement. And I was expecting maybe 20% down, but certainly not 50%. Even if the market went up, the cost of staying in cash was fairly small IF you went ahead and spent it down to zero before selling equities.

If the market is higher than my retirement projections I'll take out some cash. If it is lower than projections I'll spend the cash first. If I don't have any cash I'll sell equities as needed (more like once a month than once a year).

I didn't want to always have 3 or more years worth of cash sitting there over 30 years doing virtually nothing. I'd rather sell equities as needed. I'm just trying to smooth things out a bit with the cash scheme.
Animorph is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Fixed Rate Investments & Inflation Fastfade FIRE and Money 46 10-16-2008 06:08 PM
Poll: who is living solely off their investments? wabmester FIRE and Money 27 10-23-2006 12:58 PM
Balancing stocks, bonds & fixed income investments zandrajohn FIRE and Money 5 06-01-2006 08:57 AM
Was it freaky to start living on investments? audreyh1 FIRE and Money 7 01-20-2006 05:56 AM
Best & worst living costs Nords Life after FIRE 0 05-13-2005 06:18 PM

» Quick Links

All times are GMT -6. The time now is 07:51 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.