PHILADELPHIA REFLECTIONS
Musings of a Philadelphia Physician who has served the community for six decades

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Investing, Philadelphia Style
Land ownership once was the only practical form of savings, until banking matured in the mid-19th century. Philadelphia took an early lead in what is now called investment and still defines a certain style of it.

Old Age, Re-designed
A grumpy analysis of future trends from a member of the Grumpy Generation.

Favorites - II
More favorites. Under construction.

How to Live Off an Investment Portfolio

Many studies have been done. The rule is this ...

If you have a well-diversified investment portfolio, and

  • You want to live off the proceeds
    • ... for a long time (20+ years)

You must withdraw no more than 4% per year.


  1. If your expenses are greater than 4% of your portfolio
    • Reduce your expenses
          and/or
    • Find outside sources of income
    or you will run out of money
  2. If your investment portfolio is not well diversified it will not last as long
    (in other words, don't try to beat the market)
  3. If your investment portfolio has high fees it will not last as long



Sample Diversified Portfolio
Asset Class Symbol
US Total Market VTI
Europe DevelopedVGK
Asia Developed VPL
Emerging Markets VWO
US REITs VNQ
Commodities DJP
US Gov't Long TLT
TIPS TIP

Plus a money market for cash



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(1781)

At last! Someone who understands! Thanks for poitsng!
Posted by: Jonni   |   Sep 6, 2011 3:16 PM

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