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Retirement Income Overgrowth: Prioritize Cash Flow
In retirement, a stable income strategy proves superior to an equity growth strategy. Retirees often face the necessity of withdrawing a percentage of their investments to meet living expenses, regardless of market performance. Relying on equities can compel retirees to sell assets during downturns, thereby diminishing their capital at unfavorable prices. Conversely, an income-focused approach, yielding substantial cash returns (8-10% annually), allows retirees to withdraw necessary funds without tapping into their capital. This method not only supports living expenses but also enables some portion of the income to be reinvested, thus providing a buffer against market fluctuations.