Danger: Investing When You Need the Investment Income

In our post yesterday we touched briefly on the perils of investing when you rely on the income from your investments. We discussed the way that when you NEED income from the market, it often forces you into short-term thinking, which results in more risk-taking, which leads to lower levels of wealth over time.

In The Aleph Blog, a blog we follow that focuses on providing investment wisdom to ordinary people, the author of this post further elaborates on this danger. He takes the analysis even one step further to provide some feedback on how the common investor might go about making a broad asset allocation and provides high level thoughts on how much you can withdraw in retirement. 

We think this is great reading to supplement our post from yesterday if you are looking for more information: