[njbchbum]

Originally Posted by Chi-Town

That's a good question. There are many of us with no pensions for income. And for a lot Social Security has not begun and in most cases is not enough to live on. But interest rates were high and corporate bonds were at par, and you could get an income stream from them. Of course, that model has changed.

Some time ago my financial advisor said that contrary to a natural inclination to become very conservative in your asset mix that equities need to be a higher percentage than I was comfortable with. But I followed the advice. Once a year I sell 4% of my portfolio. The advisor picks the mix. I understand that this formula is far from unique to me.

A higher market let's me cash in for the year and may cushion the next withdrawal during a down year. I retired at the beginning of 2010 and switched to a higher equity mix in an up market. So I bought at yearly highs which was a hard concept but it has worked out due to the bull market. Another thing the advisor said was there were very few places for investors to put their money other than equities which creates a demand for them.

The 4% can be tweaked as circumstances dictate. Your money should outlive you.

Wow! Sounds like the folks with an "asset mix" and a financial advisor stand to benefit from the 1/2%. Good for them! Wonder if the rest of us without such mix and advice ever will; or if what purchasing power the rest of us have is responsible in some way for that 1/2%! I liked the days of higher interest rates when even I could make some $$!