While you are working, you add money to your investments to build a nest egg. In retirement, it’s time to start taking that money back out. The income goal in retirement is to mimic the paycheck you were receiving while you worked. This new “paycheck” often comes from several sources, including Social Security and/or pension payments, and perhaps rental incom
Investing in retirement takes a different approach than investing to build wealth. In retirement, investing for income becomes much more important.
A convenient truth of a 4% withdrawal rate in this market is that dividends and bond income will come pretty close to covering it. However, once you start withdrawing more than the income the portfolio can predictably produce, you are relying on growth to fund your spending.