Personal Finance
Variable Withdrawal Strategies for Financial Independence- The Definitive Guide
By Investment Moats  •  November 4, 2018
4 years ago, I came across some articles on different kind of retirement spending. It is also the time when we started hearing about the 4% safe withdrawal rate. And thus I got curious how robust is it for us to spend 4% of our wealth accumulated, and then consistently increase the spending based on inflation. So if my expenses is $2000/mth or $24,000/yr, I would need to accumulate $24,000 / 0.04 = $600,000. After investing for some time, I realize in our region we can get a lot of dividend stocks conservatively yielding at least 5% in dividend income. If you factor in at least some inflation adjusted growth, these stocks can give a total return of 7%, if not more. So why can’t I use a 5% withdrawal rate? In that way I would just need to accumulate $24,000/0.05 = $480,000. The target to financial freedom ......
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By Investment Moats
Investment Moats is set up by Kyith Ng and have been around since 2005. He aims to share his experiences making sense of money, how money works and ways to grow his money. It hopes that by sharing his experiences, both good and bad, season investors can advice and critique his decisions and new investors can learn from them and find their own style ...
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