You bring up very good points. Additionally, those who favor generating a routine "paycheck" from their equity/bond portfolios seem to be missing the point that the annuitized income arrives independent of market conditions. Some might experience trepidation liquidating shares when the stock market drops (out when both the stock and bond markets drop together).I like the comfort of having a TIPS rolling ladder and an SPIC, ether of which will pay me enough for basic expenses. My concerns are 3:
1) I like having a regular monthly income, to automatically pay all my regular expenses. I was hospitalized once and all my income and expenses happened without me having to do anything.
2) My TIPS ladder is for inflation protection, plus a bit of security in case of unexpected expenses of old age.
3) In case I some day get old and stupid, I like a guaranteed income for life that I can't give away to a scammer.
This leaves my index fund to quietly grow in the background.
It's not all or nothing. We use MYGA's as part of our FIRE funding.
Statistics: Posted by AlwaysLearningMore — Tue Mar 05, 2024 9:24 pm