Don't Die Broke

I thought this article in Daily Buy Sell Adviser was an interesting one. The author suggests talking a fixed percentage out of you portfolio each year. I think that investors should think carefully about how to use an investment portfolio for retirement. You do not want to be 90 and broke.

When I stopped working to live off my dividends, the rage was all about the 8%, 4% rule, or just the 4% rule. I wrote about Using 8%, 4% Rule and about the 4% Rule in the past.

I stopped working and started to live on my portfolio in 1999. I began by taking out 4% of my portfolio because of articles I had read. However, in both the 2000 and 2008 bear markets my portfolio lost around 30% of their value. They did recover nicely, but I also do not want to be 90 and broke, so now I only take out what I earn.

I have to take a certain amount out because I have RRIF accounts. However, I do not have a budgeted withdrawal from my Investment Accounts that is higher than my overall income. Generally, I use what I earn in the previous year to target what I will take out for spending.

On my other blog I wrote yesterday about Canexus Corporation (TSX-CUS, OTC-CXUSF)... learn more. Tomorrow, I will write about Algonquin Power & Utilities Corp (TSX-AQN, OTC- AQUNF)... learn more on Wednesday, June 15, 2016 around 5 pm.

Also, on my book blog I have put a review of the book The Ottoman Endgame by Sean McMeekin learn more...

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

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