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.
Last updated : 14 Sep 2019
I am 63 yrs old uncle living in HDB heartland who has achieved financial independence @ 56 and finally retired @ 60 from full-time job as employee on 1 Oct 2016.
Single household income since 1995 with three children.
Currently, two sons and one daughter are working.
I have been doing 20 years of long-term investing and short-term trading in Singapore stock market only since Jan 2000 so I am that so-called Panda or Koala in the investment world.
I am currently executing my Three Taps solution model to maintain sustainable retirement income for life till 2041 @ 85 yrs old.
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