What does the Bigy and Easy cut really mean to me?
While it stings to see a couple holdings drop their distributions, it is far less painful than imagining an equivalent in a growth etf price drop ... which can snowball out of control with sequence of return retirement problems for the rest of a retirees life. Next year at this exact same time I will retire in September and if something similar were to happen then ... I would have all the hard options available to me as I would if I was a grow and sell investor ... Plus ... I will also the option of just spend what I need from the 30% yield distribution and reinvest the rest as my investment balance grows without missing a lifestyle beat. https://evolveetfs.com/2026/08/an-update-to-bigys-distribution/
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ETF Go@etf.go · 21m
How is this the different? If the Manager buys ‘growth’ stocks, uses leverage, sets a 30% distribution rate and charges high fees to do this you have the exact same ability (if not greater) to have performance ‘snowball out of control’ and cause ‘sequence of return retirement problems’. A distribution yield has NO IMPACT on ‘safe withdrawal rates’ or future return potential. If anything - it simply disrupts compounding more frequently. I would seriously consider reviewing the attached table which shows the probabilities of success (not hitting $0) for various asset allocations, withdrawal rates and timeframes. You’ll see that historically anything greater than 7% withdrawal rate has a significantly lower probability of lasting over long timeframes which again suggests a 30% distribution is irrelevant (if not dangerous for people who base their spending on higher rates) in retirement. 🤷♂️👍
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