In article
,
Smitty Two wrote:


Compound interest works when you're 20 and can invest for 40 years at 8%
or better, let's say. It doesn't work so well when you start living off
the principal immediately, and all the reasonable investments are
history.

I'm getting around 4% on my bonds ( staying under 4 years and AA or
better). I have quite a few stocks that are paying me dividends better
than 5% (some I have had a long time, have actually gone up to where I
am making almost 10% on my original investment). THere is still no 20
year period where the S&P has failed to earn less than 7% compounded. I
plan to live until 90 or so, so I still have way more than 20 years. The
real problem with the Geezers is not outliving your money and to make
sure you aren't losing much to inflation.

--
"Even I realized that money was to politicians what the ecalyptus tree is to koala bears: food, water, shelter and something to crap on."
---PJ O'Rourke