How many investment bloggers will deliberately choose to eat off our capital (war chest) as supplementary to passive income strategy as sustainable retirement income for life?
Our passive income strategy may come from dividend incomes (dividend payout ratio of 90% or more), growth dividends (dividend payout ratio of 60% or less) and rental income, etc
Dividend incomes are not that difficult to find. Come Monday, we can get from the market at least 6% yield; but not for growth dividends. For that, we may have to wait for years for Mr. Market to throw them at us. While waiting for growth dividends opportunity; so how?
One way is to eat off part of our capital (war chest) while waiting.
This will be the cost of premiums for growth dividend and capital appreciation investing strategy. This may not be the preferred investing method by most investment bloggers for financial independence; but it is not necessary bad ......