Why are you going to have your income/life dictated by company “x’s” dividend policy?

Selling shares to fund retirement can easily be planned for. Why would you want 100% or your principal in place at death? You can’t take it with you.

It’s not difficult to safely withdraw from your principal in retirement in a safe way, that will likely still end up on you having MORE principal then when you started making withdrawals.

As long as the value you sell to live is less than the increase in value, your principal is growing.

Retirement income should be determined by what YOU want out of life not company “X’s” dividend policy.

Dividend investing and the idea of never selling anything is simple for us to understand. It plays into our bias of “loss aversion”.

It’s not the worst thing in the world, but it’s certainly not a rational approach to financial planning which is the ultimate point of the article.

Economic policy wonk by day. Personal finance writer by night. I write about investing, debt, and all things related to money. Editor of Making of a Millionaire

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