It looks like you're new here. If you want to get involved, click one of these buttons!
physicianonfire.com/drawdownWe work, we earn, we save. We invest simply and sensibly. Perhaps we’ve accepted the challenge to live on half. Eventually, we have reached our magic number.
We’ve got 25, 30, or 33.33 years’ worth of anticipated annual expenses for a 4%, 3.33%, or 3% withdrawal rate spread across various tax-deferred, tax-advantaged, and taxable accounts.
We are experts in adding to them. But how do we best subtract from them? Today, I’d like to share our drawdown plan in early retirement.
Investors sometimes sell their best-performing stocks too soon and keep their poor-performing stocks too long.Very good discussion in this thread.
Over time, I have read about a lot of buying strategies. E.g., DCA, BTD, etc. But I have never read an exit strategy. I think this is a secret sauce people do not share. I hope folks in this forum share their exit strategies.
@waxman who said "Leveraged loans and BDC's, stay far, far away IMHO." Would you care to elaborate?
https://connect.rightprospectus.com/janushenderson/TADF/47103E742/P?site=janushendersonThe Fund expects to maintain an average-weighted effective maturity of three years or less under normal circumstances. ... "Effective" maturity differs from actual maturity, which may be longer. In calculating the “effective” maturity the portfolio managers will estimate the effect of expected principal payments and call provisions on securities held in the portfolio. ...[A]ll else being equal, [this] could result in more volatility than if the Fund calculated an actual maturity target.
...
Extension risk is the risk that borrowers may pay off their debt obligations more slowly in times of rising interest rates, which will lengthen the duration of the portfolio. Liquidity risk is the risk that fixed-income securities may be difficult or impossible to sell at the time that the portfolio managers would like or at the price the portfolio managers believe the security is currently worth.
© 2015 Mutual Fund Observer. All rights reserved.
© 2015 Mutual Fund Observer. All rights reserved. Powered by Vanilla