Expecting your investments to provide for monthly expenses is inimical, but for retirement. You may be thinking that if your investments cannot provide for your expenses, why invest? Let’s look at the logic of the statement. Ideally, you should start saving and investing when you start earning. Even if you don’t do that, even if you start investing in your 30s or 40s, there is a long horizon ahead. Investments should be for a long horizon, for particular time-defined goals, or for retirement. If your long-term savings and investments have to provide for your sustenance before retirement, then it is not your investible surplus in the first place. The other situation could be, you are living beyond your means, hence you force yourself to draw from your long-term investments. Post retirement, there is no concern if the regular flows from your investments, i.e., interest / dividend, is providing for your monthly expenses.
75 years to reach per capita income of $2730, will take only 5 years to add another $2000, FM Sitharaman
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