Wade - by living off the interest it means your capital is staying the same and is therefore being eroded every year by inflation in terms of buying power. So if you have $2M in treasuries now and you are living off $100k interest, that $2M and $100k interest will be worth a lot less in 10 years depending on what inflation does. Your capital and income will be getting diminished with every passing year on an inflation adjusted basis. Nothing great about that.
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