03-03-2021, 08:55 AM
You shouldn’t account for only regular living expenses. Once in retirement, a healthy buffer in either cash reserve or additional income stream will be needed for emergencies. What if you need to replace a car or you or spouse gets sick and need a special treatment? There may be a need to cover long term care expenses in either a facility or by hiring nurse.
These costs will quickly drain your portfolio if they come from principal.
These costs will quickly drain your portfolio if they come from principal.