Retirement is supposed to be about de-accumulation
At least, that’s what we’ve been told. Work for 30 or 40 years. Save as much as possible. Retire. Then slowly start eating into the portfolio until you eventually run out of money. But what if you retire… and your portfolio keeps getting bigger? We’re withdrawing money every month. We’re travelling. We’re enjoying life. We’ve done Europe twice and Mexico. We’ve helped the kids. And somehow… the portfolio keeps accumulating. I’m not selling off chunks of my portfolio just to create cash. I’m primarily living off the income it produces and allowing the rest to keep working. Which has completely changed how I think about retirement. Maybe the goal shouldn’t be: “How do I make my money last until I die?” Maybe the goal can be: “How do I build a portfolio that can fund my retirement without having to destroy the portfolio?” Obviously, markets don’t go up forever, and there will be bad years. But if your portfolio can generate enough income to cover your lifestyle while still participating in the growth of the market… you may end up with the strangest retirement problem of all: You retired… but your portfolio didn’t. 😂 And honestly, I’ll take that problem. What do you think? Is retirement really about de-accumulation? Or is it about making your money work hard enough that you don’t necessarily have to spend the capital?
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16 Comments
Heath
@incomewealthinvestor · 26d
You will create more wealth when money is working for you and not having to work for money
Am @whatsa · 26d
Retired a year ago and still accumulating. I get a “paycheque” twice a month that is way higher than my work paycheque and pay less in taxes. Go on trips, help the kids out. This is not what I expected in retirement.😳
Carlos L@retirement_rants · 26dEdited
@incomewealthinvestor That really is the secret isn’t it? I used to look at my portfolio as just a way to replace my paycheque. Now I really don’t know 😁
Ed
@edsam · 25d
Congratulations! Retirement is managing two hourglasses: money vs. healthy years. You found a happy place where you spend less than return allowing you to build a legacy portfolio. You are doing well.
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