(01-23-2014, 10:27 PM)Kerim Wrote:(01-23-2014, 08:36 PM)cannew Wrote: What happen to the DG? Why have you not factored in the growth of the dividends.
Again, I left out both inflation and dividend growth for simplicity -- it is only a crude illustration to make a point. I understand and hope that dividend growth exceeds inflation. And if that is true, then in both scenarios, reality will be better than reflected.
(01-23-2014, 10:08 PM)fiveoh Wrote: To me not spending principal is about security. I dont want to get to 75, have a huge bear market and run out of money.
Believe me -- I agree completely and hope that I'll reach that magical point where my portfolio is large enough that I can live off of the dividends only. But realistically, that may be a huge number, and many may not ever get there. If you are lucky enough to have the right combination of time and excess capital to invest, you may get there. But many may not.
I agree. My wife is supposed to get a pension if she works till 50 or older. If it wasn't for that we would need to save a MUCH larger amount. I'm not sure that I'd want to work an extra 10-15 years to not draw down my principal. However, if it was only 3-4 I probably would.
On a side note, how many of you guys are planning for SS in your calculations? The consensus among financial planners seems to be, it wont last a long time in its current state.