Frank Eberhart: Retirement Goal

Posted by admin on Thursday, November 11, 2021

Frank Eberhart Money Quote saying the point of retiring is to live on interest, not principal. Frank Eberhart said:
 

 

“The goal of retirement is to live off your assets – not on them” — Frank Eberhart

 

 

In this quote, Frank Eberhart seems to be emphasizing the importance of financial planning and asset allocation for a secure retirement. Specifically, he suggests that the objective of retirement should be:

• To utilize one’s accumulated assets or savings as a source of ongoing income and spending money during retirement years through dividends, interest payments, and other returns (“live off your assets”).
• However, Eberhart cautions against drawing down the principal balance of those assets for basic living expenses (“live on them”), which could deplete the nest egg prematurely without replenishment.

The best interpretation is that Eberhart believed retirees should aim to structure their finances so their assets generate sufficient cash flow to cover costs, thereby preserving the assets’ long-term purchasing power. His view stresses the importance of investment strategies that provide retirees the ability to benefit from assets without steadily diminishing their value over time through careful spending in line with returns.

Categories: investment Tagged:assetsFrank Eberhartretirement