The bigger problem…
The goal is to spend the golden egg, and not slaughter the goose. It truly is the goal to have a pot of money growing at a rate faster than the income you are drawing off of it, especially if you hope to have leftovers to leave behind to future generations. The “endowment” lessons we learned from Benjamin Franklin when he left money in trust to grow for a 100 years before it was used, gave the university entrusted with the money a valuable opportunity to learn about money. He was a talented teacher. Compounding interest and geometric growth is …