Retirement may be the best time to “eat your principal”
It’s an investing rule of thumb you probably learned from your grandfather: “Don’t eat your principal!” And Grandpa was no fool. Living off your dividends and assets alone means you aren’t spending down the engine that drives your retirement income. As a result, your principal can continue to work for you for the rest of your life. But while the theory makes sense in some cases, times have changed quite a bit since your grandparents were planning for retirement.