Crashnburn

What Dividend Yield Can, And Can't, Tell Us, Part II

Smarty Pants,

Buying low and Selling high is what every investor tries to do. (Duh!) It is possible to accumulate enough in dividend paying equities to fund your retirement without selling equities, but that's more conservative than neccessary. As long as your annual withdrawal is less than your portfolio growth minus the sum of inflation plus 2% (for volatility), then your portfolio will continue to grow even though you are periodically selling equities.