So, what I'm interpreting here is that the folks with SS, pension and IRA/401k savings, income pretty much = spending. For me, that doesn't work. I'm 75% in taxable plus 25% in deferred income, which starts paying from end of 2019, for 10 years. So, my "income" is my interest and dividends on my taxable acct. My spending could be higher or lower than that amount (so far, it has been lower). Last year, I took money out of the market and bought a home...which is more investing than spending, but does add to spending (more prop tax, ins, maintenance, etc). But, when I sell it, I should be able, in most cases, to sell it for more than the price I paid. The cap gain is income, the return of capital is not income. When i have large chunks of cap gains, they are more likely to be reinvested than spent.