Denzel Rodriguez compares two retirement strategies with a $1 million portfolio: taking 10% annually ($100k) with 4% growth, or taking 4% ($40k) with 10% growth. He argues distribution rate matters far more than investment returns once you need the money to live on.
Would you rather have $1 million at a 10% distribution with a 4% increase on the million dollars, or would you rather have a 10% growth on your million dollars and only a 4% distribution? Which would you rather have? One will give you $100,000 a year in income for the rest of your life. The other, at 4%, million bucks, will give you $40,000 a year in income for the rest of your life. But you're gonna earn a rate of return of 10% in that million. Does it matter? In retirement, your rate of return matters so much less when you reach retirement. When you start to solve for cash flow, net worth is, is almost irrelevant. It's all about cash flow.
