A.I.M. Users Bulletin Board

[ls7550]

I would like to canvas those in (early) retirement on their approach/ experiences on making regular withdrawals.

Hi Nick

Instead of all of stock allocation being allocated to stocks I like half in 2x that I would have invested in a 1x, other half in 'cash'. That provides liquidity and ready availability regular withdrawals even if all other 'cash' reserves have been depleted.

I don't bother focus upon dividends. I just take my own dividend out of total returns.

Increasingly lazy, primarily I use a Talmud style - land (own my own home so I don't have to find/pay gross rent to another). Commerce (stocks) and reserves (gold). In effect liquid asset wealth split 50/50 stock/gold, held as 25% 2x stock, 50% gold, 25% high street bank bonds/gilts (cash). Typically one or the other of stocks or gold tends to do well each year and I'll top slice a years income out of profits into my current/cheque account once each year when so. For the last 10 years for instance its been a pretty much even split of stocks/gold being the years best performing asset (5 years stocks were best, 5 years gold). Where the averages of the last 10 years have aligned to the averages over the last century i.e. the average gain from the best asset tending to be +20% whilst the worst asset tending to be near 0%

2018 was a relatively poor year, -13% stocks, +5% gold type outcome, such that 2019 is set to be a case of my current account 'borrowing' from the cash half of the 50/50 2x-stock/cash pot.

Gut feel is that 2019 could see a good year for 2x stock, indeed its already up around 12% year to date, but year end 2019 is a long way off yet and I wouldn't be surprised if December 2019 ends with gold again having been the years better performer. The choice of assets sits comfortably with me - feels like I'm hedged/covered no matter what might be encountered.