Retirement income from the Markets. Safety.
If I need all my income from my market dividends in order to live, then am I not very exposed:
1. if the market drops for a long period I starve
2. I can actually lose money completely if companies go end up
3. if I use all the income then after say 10 years my initial capital will still be, say, £1m, which inflation will have reduced by 30% at least. If this £1m were in bricks and mortar then I may not GAIN in buying power, but I will have the same relative capital AND have had the income from rents. This applies even allowing for inflation, management costs, voids, tax, repairs.
I just do not understand the logic of 'Mike - the six figure dividend earner' Would you not be richer, both in income and capital security and growth, with sensibly purchased property, fully managed.?
I cannot get an answer to this conundrum because all you guys out there seem wedded to the markets. You mutter about spreading the risk and reinvesting dividends and over 20 years markets do better than property. Not one site proves this to me.
I regard myself a bear of very little brain, but my cv would suggest that I should easily understand all this.
But I just do not get it. HELP, please and keep it simple.
Thank you so much - I have learnt masses from your site.