Dear readers, I have realized that I am still undecided as to which approach I should take. Both options have both advantages and disadvantages. This decision is important and should be decided on before you progress to the next phase. This will decide on how and what kind of investments you will have to make. Before I proceed further, here is what I think some of the advantages and disadvantages are.
Drawing Down on Portfolio
- Takes a shorter time to build.
- Requires a smaller fund to build.
- Can retire earlier without too much compromise.
- Disadvantage
- Might run out before I leave this world.
- If the Market turns sour for a few years, I will not be able to sleep without fear of losing a major portion of my portfolio.
Dividend Stream
- Constant dividends that does not reduce the overall capital.
- Capital can be used as inheritance for children ...
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