audreyh1
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Dunno. Don't want to get into an argument over it but we haven't sold a share in the 14 years that we've been RE'd. Just living off dividends (and SS).
We have a healthy dividend bucket as a set-aside and over the years the portfolio has grown (doubled) and the dividends have increased as well.
True, inflation has been tame but I don't see a risk to the strategy at this point in time.
As long as you have a reasonable AA with a healthy exposure to equities - at least 35% unless elderly - and you don’t exceed 3.5% to 4% withdrawals depending on your timeframe, your portfolio should be able to keep up with inflation.
The problem is if someone puts all their funds in 3% 5-year CDs and takes out all that interest every year. The principal is not growing, and thus won’t keep up with inflation.
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