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That passive income does have to carry you through bad economic times as well. What if the rate of return is only 1% or the value of your portfolio drops drast
by ThrowawayR2 8y ago
That passive income does have to carry you through bad economic times as well. What if the rate of return is only 1% or the value of your portfolio drops drastically because of a full-blown economic depression?
- tejohnso 8y agoThe 3% is an average. Some years it'll be higher, and that extra income goes into your savings and offsets the bad years. Plus there's the cushion mentioned and that should also be accumulating a larger and larger safety net.