16. Income Trumps Total Return
“In the old days, trusts were written in a way that provided one beneficiary any income derived from the assets and another beneficiary any capital gains from the assets,” said Christopher Carosa, a chief contributing editor and the author of five books, including “Hey! What’s My Number? How to Improve the Odds You Will Retire in Comfort.”
He warns that the cost of acquiring stocks and bonds to produce sufficient income can be high in a low-interest rate environment.
“If you rely solely on income, you either need to grow your assets faster than is reasonable, save more than is possible or end up living an unacceptably reduced lifestyle,” he said.
