Read? Investment Portfolio Management : Know enough, Know your yield, Know your risk
Spur21 July 2019 at 13:46:00 GMT+8
Usually any drawdown is taken from the least volatile asset i.e. cash then bonds.
Not ideal to drawdown from equities unless size of equities is >= 30X annual expenses.
We have to be realistic with retirement income for life as not every one can afford Fat FIRE or Fat retirement.
For Lean FIRE or Lean retirement; we have to be very cautious over sequence-of-returns risk. Like it or not; long-term investing for income is a Game of Capital size and investing strategies. For Lean FIRE or Lean retirement; there is little room to recover from any large draw-down at market low.
...
