About Markets
Since I stopped writing on my FB page Real Fiscal Conservatism in Government on the market and other things financial I am going to comment occasionally on here.
I am one of those who does not subscribe to the traditional retirement investment strategy. If you are so well funded that the yield of bonds and utility or financial stock dividends are sufficient to give you the lifestyle you desire for the several decades you hopefully will live, then good for you!! I am not one of those and my equity portfolio is based on a growth approach. Too risky you may say but let me share the basic rational.
Historically the market has returned slightly over 9.0% and the average recession has been around two years in length. In retirement after 72.5 years of age (some will still be under the 70.5 rule) you must make annual mandatory withdrawals (AMW). With those two factors in mind I hold two years worth of what I want in spending availability and remember in this strategy you must hold that two years of AMW at the minimum. Why?
Never be a seller in a recession (buyer’s market) and to make your AMW if you hold equities WITHOUT the prior advice you will be forced into that poor position. If you diversify well—which I will discuss my strategy on that in a post in the future—you can withdraw from your equity account at a rate high enough to give you a GROWING income while also growing your principal.
Financial advisors are usually working from the same old script and I have seen far too many people put themselves into ‘survival income’ levels. You can have your cake and eat some of it too. PS I stopped writing on the other page because I had put my office number and email and the amount of progressive harassment was incredible. Progressives are a nasty hate filled group would be my assessment based on that experience.
”at "About Markets Since I stopped writing on my FB page Real Fiscal Conservatism in Government on the..." - June 24, 2021 at 05:01PM
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