Quote:
Originally Posted by Danmar
Although we take similar approaches. I think there may be a philosophical difference. I take a higher WR because the market is up. I expect to spend this over next couple of years. I would not expect this WR to continue indefinitely.
While you, just take your regular WR even though you don’t know yet whether or where you will spend it.
Fair description?
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Yes, I just take the same % withdrawal regardless of whether the market is up or down. So while markets are high, I have a bigger $ income, and when markets drop, so does my income.
Our income is way outpacing our spending at the moment because our portfolio has grown a lot, but I keep taking out the same %, because I figure it can
go poof shrink any day now. I'd just as soon the money I am "allowed" to spend not be in long-term riskier investments so I withdraw it all each year.
I'm a total return investor with a diversified AA that gets rebalanced (as opposed to a mostly equities investor using the dividend stream) so that also makes a difference in our approaches.
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