This is where i have difficulty in port management. Shouldn’t the 4% spending needs also be part of the liquidity needs of the Wilson-Fowler endowment?
my view: 4% needs is part of income stream requirement liquidity need is need to withdraw big chunck of investment for emergency use
So by that logic, if i have regular income needs from my portfolio, that would not be a liquidity need for the portfolio. Is it?
i would think so. examples for liquidity needs that you may have encountered: daughter graduating in couple of years and tuition will be needed. needs to buy a house in a couple of years needs to fund something else in few months. above are short-medium liquidity needs.