Tag Archives: longevity risk

Investing for Income vs. Total Return

One of the most-discussed issues in long-term investing is whether to focus on income generation or simply to think in term of total return (price gains plus income).  The discussion of this topic often focuses on whether investors should seek out stocks that pay dividends vs. simply planning to sell a fraction of their portfolio periodically to provide income.  I recently wrote a long article on this topic, which has been cited in a very interesting discussion of this theme going on at Bogleheads.    One of the most active participants in the debate on the Bogleheads forum and elsewhere is Larry Swedroe, a well-known advisor and author.  As I read the Bogleheads discussion thread, it strikes me that there is considerable confusion around this topic, so I thought I would add a few more thoughts. Continue reading