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age similar to you. Asset alloc - probably more IP than shares - can't really remember a lot of detail. Can't remember. You would do well to do a lot more reading of SS - start with the 5 star threads & interviews ?

Hi redwing, Sure am. I stand by what I said in post #1 back in 2006 - pure LOE is v. risky. The version that I structured survived the GFC. It had a degree of risk attached back then, but with sufficient base income from rent & dividends, and sensible draw-downs it survived what back then...

Hi handyandy, I've started a thread with my view of LPTs here. KJ

Hi Simon, The big problem with LOE is the volatility of growth. By diversifying, the volatility is reduced, since Shares & IP & LPTs are all counter-cyclical. My shares have gone up 50+% over the last 3 yrs, but IP has achieved 0%, the previous 3 years was the opposite. So recently I've drawn...

Using Pure LOE, the risks are significant. eg Japan - 50% fall is RE values over 25 yrs up until last year Bris - 0% growth for 10 yrs a decade or so ago If you mitigate the risk using some of the above suggestions, your worst case would be a limited to the same as not using LOE. Selling...

Hi jscott, Good questions.... Depends on your structure. If you have income you pay tax. If your structure repays you money that you've previously lent it, or you borrow money to live on you don't pay income tax. However, check with your accountant. Consider borrowing all deductible expenses...

The subject of LOE has been raised more than usual lately.... LOE is risky – this is because of the volatility of IP growth, eg Japan has experienced 50% fall is IP values over the last 15 years, after a significant bubble. However, LOE will work if the risks are reduced significantly – a lot...