Paul’s favorite distribution strateg Each year Paul updates his favorite distribution strategy. In this discussion listeners will want to have copies of distribution tables 3 and 12. These tables reflect a 5% initial distribution plus annual increases for inflation. Tables 17 and 16 also start with a $50,000 distribution, but the distribution is determined by taking 5% of the previous year’s ending value. The discussion includes 12 defensive steps that Paul and his wife apply to their investments.
At the end of the podcast Paul answers several common questions about this strategy:Is it reasonable to take out 6% a year?Is it reasonable to expect future returns to be similar?If returns will be different, what returns should be assumed for planning purposes?