David Fleer
Bristlecone Value Partners, LLC
12301 Wilshire Blvd., Suite 320
Los Angeles, CA 90025 USA
Work 1-877-806-4141
www.Bristlecone-VP.com


How Much Can I Safely Spend from My Portfolio?

June 16th, 2018

This is among the most common questions we receive from clients, many of whom are either already retired or nearing retirement. It is an important issue and one that often prompts investors to seek out professional help from an advisor.

But first, let’s lay out some basic terminology:

What is the ‘net spending rate’?

This number is defined in relation to your assets. First, add up all your annual expenses from last year. Make any needed adjustment(s) to get a more realistic amount if you feel that some items were over or understated. If you were still working, adjust for that as well.  Subtract from these expenses any income that you receive from sources other than your portfolio: social security benefits, annuities, pension, rents, alimony, etc. The difference between the two is your net spending, i.e. the amount you’ll need to draw from your portfolio. The net spending rate is simply this number expressed as a percentage of your portfolio’s value. Read the rest of this entry »

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