Friday, July 10, 2009

Low Sweat 101

Investing is never 'no sweat' -- especially if you're living on your portfolio, or plan to shortly.

Even if you love investing, like I do, a bad market can mean a bad case of the night willies (and sometimes the day willies, too). Even low maintenance index funds have betrayed investors living on their portfolios (or planning to): 50% down means 50% less cash withdrawal, or else doubling your withdrawal rate. That's the serious willies.

So how about some 'low sweat' investing? A high quality, well-diversified portfolio whose dividends and income grow year after year to offset inflation? I've been investing this way since the bear market of 2000-2002 and it has served me very well. I'll be blogging more about low sweat investing in the days to come. Thanks for visiting.


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