Do you need to build a portfolio that will generate cash? Are you more concerned with paying your bills and having enough income than growing richer? If so, you need to focus on something called income investing. This long-lost practice used to be popular before the great twenty-year bull market taught everyone to believe that the only good investment was one that you bought for ten dollars and sold for twenty. Although income investing went out of style with the general public, the discipline is still quietly practiced throughout the mahogany paneled offices of the most respected wealth management firms in the world.
In this 10 part step-by-step guide, I'll explain what income investing is, how it can let you live off your money by creating what amounts to a private pension, and some of the things you should consider as you structure your income investing portfolio. For those who dream of "living off their money", this is a great place to start.
Read Income Investing for Beginners - a 10 Part Guide to Successful Income Investing.
At the end of the 10-piece article you say:
Grand Total Pre-Tax Income: $24,850 in cash. For sustainable money, however, you should only take out 4% of the $350,000, or $14,000, so you would leave $10,850 in your income investing portfolio. This setup should last you forever.
I thought the 4% rule referred to withdrawing your principal? Your sample portfolio generates $24K in excess of the initial portfolio, so you could take all of it and never lose your initial investment. The $10K you say to leave invested grows the portfolio to $360K.
You’ll never outlive your money if it keeps growing, but couldn’t you use some more of it while you’re alive?