[All of the withdrawal rates that follow are in
terms of real dollars.
At least two - thirds of those portfolios that will succeed have balances above 90 % of the initial balance (in
terms of real dollars, after adjusting for inflation).
They are in
terms of real dollars: 1) With an interest rate of 1.0 %, you can withdraw 3.87 % for 30 years or 3.40 % for 35 years or 3.05 % for 40 years with total safety.
They are in
terms of real dollars:
If you are planning to withdraw equal amounts each year in
terms of real dollars (that is, after adjusting for inflation, maintaining constant buying power), you can always withdraw 1 / N times your initial balance for N years.
During the years of high inflation, dividend payments fell in
terms of real dollars.
While the cost of originating and servicing a $ 250,000 loan and a $ 25,000 loan are generally the same in
terms of real dollars, the cost as a percentage of each loan's size is significantly different.
This trend dwarfs the new construction boom in
terms of real dollars and earning potential for our industry.