Personal Finance
Flexible Spending/Withdrawal Strategies for Financial Independence – The Definitive Guide
By Investment Moats  •  March 9, 2023
Eight and a half years ago, I came across some articles on that changed the way I look at retirement spending. It was also the time when many of us started hearing about the 4% safe withdrawal rate. And thus I got curious whether we can spend 4% of the wealth accumulated conservatively, 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. My target for financial freedom seemed so much closer!...
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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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