As an owner of Vanguard funds, I get a newsletter called In the Vanguard. An article that I received on Friday, March 4 caught my eye. It’s about retirement spending. I noticed two things: First, the article suggests that a safe initial withdrawal rate is 4.75%, which is significantly higher than the commonly seen 4%. But it is the second point that I think is far more important. “Now in retirement, you have to spend that money.” Once again, we have experts simply presuming, without discussion, that depleting your assets is how you will fund retirement.
Do you think that retirees might be interested in RIPS? I think interest would be huge. Why doesn’t Wall Street tout such a product? Perhaps because there is no money in it for them. Negligible fees, no loads, infrequent tiny commissions. But the product already exists without fanfare or a cool name. It’s called a dividend-growth stock. A portfolio of well-chosen dividend-growth stocks has all of the characteristics listed.
Source: Seeking Alpha
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