How to implement the 4% safe withdrawal rate

In a previous post (here) I addressed how much you need in assets to retire and how much you can safely withdraw per year to make sure that amount lasts you as long as your retirement lasts. That number, the safe withdrawal rate (SWR), I said was 4% for a 30yr retirement. Now, how does one actually implement this withdrawal…

Continue Reading

Are MLPs overvalued?

As promised in my last post, I want to address the concern that MLPs at today’s prices may be overvalued. There is no doubt that investing in MLPs has received increasing attention this year. This has been true of all income investments particularly bonds in the face of such low yields on savings and fear of the stock market. An…

Continue Reading

MLPs: maybe the best income investment

MLPs, or master limited partnerships, are a type of company structure that was created by an act of congress in 1986 to encourage investment in the natural resource and energy sector. They are income pass-through entities, i.e. they pay no corporate tax and pass most of their profit on to share holders (called unit holders in MLP parlance). For a…

Continue Reading

Thoughts on investment outlook

I mentioned in a previous post on my macro investment outlook of another lost decade for stocks, i.e. that 10 yrs from now the S&P 500 would be at the same level it is today. This investment outlook is based on my thoughts for overall economic growth, which drives profit growth and thus stock returns, over the long run, combined…

Continue Reading

Another way to think about dividend stocks

On Thursday, Market Folly ran a piece summarizing the latest newsletter from Trapeze Asset Management, a hedge fund, called ‘Stocks vs Bonds and Risk vs Reward’. I thought the piece was quite interesting in regards to the way a top hedge fund thinks about stocks vs bonds with respect to risk. The money quote for me is: “It has been…

Continue Reading

Core Strategy: Dividend Investing

My primary investment strategy to generate income and grow my portfolio in retirement is dividend investing. In this post I’ll discuss why dividend investing makes up the fundamental leg of my strategy. It basically boils down to history. Historically, dividends have generated upwards of 45% of the average annual total returns for the S&P500 stock index. And this is going…

Continue Reading

How much does it take to retire?

The primary theme of this blog is how to live off your retirement assets. But first one needs to accumulate enough assets to retire. So, for my inaugural post, I’ll address how to determine how much you need to retire. This can be quite a complex topic which I’ll come back to many times but lets start out with some…

Continue Reading