12-13-2018, 10:21 AM
(12-13-2018, 04:34 AM)crimsonghost747 Wrote: First of all, I agree with the notion that 80 stocks seems to be way too much. Even if you just skim through their quarterly reports and spend 10mins on each, you'll end up using 13h everytime the quarter changes. I know I spend 10min on some, 1h on other reports. I've been between 20 and 30 stocks for a while now and personally that feels like a good range to be in.There is no arguing that logic or math. The math actually supports a 4% draw down for capital and that idea is back tested. A devastating market pull market right before, or after you initially retire are among your risk factors. At the very least it would shake most of us who decide to maintain equities during retirement. And in my case retiring a little too early is a risk factor. But that was the plan since day one. I sacrificed considerably at times to invest through thick and thin, so I am doing it! I agree I don't need to leave it all to my family. They have some responsibility to provide for themselves as well.
Secondly, I'm not too sure why everyone feels like they can't eat out of the portfolio when they get old. Even if you plan on going somewhere after you die, you can't take any of it with you! I get that you want to leave some for your family and that is fine but it's not like you have to leave every dollar you've managed to acquire in your lifetime. Do the math on it, you probably have figured out an X amount of yearly income that you would like to have so you can retire early, right? And you've probably got an estimated sum of where your portfolio needs to be to accomplish that? Just see how that amount (and the time it takes to get to that amount) changes if you choose to withdraw different amounts on top of the dividend income. Even a 2% withdrawal will significantly reduce the amount that you need to get to your goal. And while you withdraw 2% annually, I'm still pretty certain that the value of the portfolio will keep going up.
I don't want to run out of money but I don't obsess about reduced income at age 90 if I am blessed to live that long, and who knows if I actually care if I have much money then. I have time to decide, and for now I intend to leave my capital alone the first few years, then draw it down very slightly for a few years. Perhaps the 2% you mention. Then assess it from there and adjust. It won't notably effect the way I invest now even if I decided today.