Thanks, ElLobo!  What I worry about is that calculations like $600/month per $120k invested will prove to be too little if the price of oil is sustained at these high levels or worse, goes up.

ElLobo,

Dude, your FRO is getting a little fat.  What happened to the "3% and sell 100 shares" rule?  I smell performance chasing :o}

As always, the arguments above come down to faith and psychology;  faith in your plan and the psychological make-up to stick with it.

Seeing you stock, fund, or portfolio drop 30% in the last year will be hard for all but the true income believers. 

Bottom line:  All strategies work if the investor understands what he owns, understands what he wants, and has a plan to get it.

"There's battle lines bein' drawn
Nobody's right if everybody's wrong
Young people speakin' their minds
Gettin' so much resistance from behind"

Bill, 

"Dude, your FRO is getting a little fat.  What happened to the "3% and sell 100 shares" rule?  I smell performance chasing :o}"

Over the last year, it was turning out to be buy 100 shares (the other side of that rule), and I didn't have the cash to do so!

"Seeing you stock, fund, or portfolio drop 30% in the last year will be hard for all but the true income believers."

How hard was it for the true growth believers to see that same drop, and have to decide which of their positions to sell!

"You'd better stop, children, what's that sound, everybody look what's 'going round!"

"How hard was it for the true growth believers to see that same drop, and have to decide which of their positions to sell!"

Real, real hard I suspect :o}

A 30% drop is no fun for anyone but 20 something who know what they are doing and the truly delusional.

"What a field day for the heat
A thousand people in the street
Singin' songs and carryin' signs
Mostly sayin', "hooray for our side""

BIll,

"A 30% drop is no fun for anyone but 20 something who know what they are doing and the truly delusional."

I get that way whenever a stock, like MMA or WM or . . . . . cuts it's dividend 20-30%!

But only if I hold it.

And it's not FRO or NAT!

Back then, whenever the 'younguns were in Hyde Park, looking for themselves, I was in Pittsburgh, looking for work.  8-)

El Lobo, I am very interested in your approach to your portfolio.  As I am nearing retirement, I am transitioning my portfolio toward more income playing stocks.  I am still debating the role (if any) of bonds in my portfolio.  I'm going to study your portfolio a bit and may have questions for you later.

 Thanks for posting your portfolio!

"Over the last year, it was turning out to be buy 100 shares (the other side of that rule), and I didn't have the cash to do so!"

I guess I don't understand the rule very well.  FRO is up 92% in the last year.  Why not sell some of that and put into your losers?

Like I said, 30-80% losses in a single stock are real hard to take and even harder to add more to.

Bill,

Over this past year, I have reduced the number of individual stocks I hold in my portfolio.  'Ifn you remember, I held about 20 a year or so ago, and am now down to these 6.  The reason is that I have gone to CEFs instead, for diversification reasons.

Regarding FRO, I once held about equal positions in FRO, NAT, and VLCCF, managed in the way I described.  In November of last year, I consolidated into just FRO.  The reason is that NAT and VLCCF had morphed into ship owners, while FRO morphed into ship operations managers.  In fact, FRO manages ships from the other two.  I liked some of the non-transport things that FRO did last year, whenever spot tanker rates were low.  Anyhow, that's what I did, and I described my reasoning in a thread back then.

My current position in NAT is the result of my recent 'experiment' into dividend capture, although I am not really uncomfortable holding it long term, if I have to.

Regarding CEFs, my fund holdings (VWEHX and ADVDX, at the time) were never 'managed' like I did my individual stocks.  VWEHX was always buy and hold.  You will notice that it, alone, provides a basic 4% (of my whole portfolio) traditional rate of withdrawal.  Anyhow, whenever I switched from individual stocks to CEFs, they also went into the buy & hold camp.

"Like I said, 30-80% losses in a single stock are real hard to take and even harder to add more to."

Tell me about it, and we can discuss MMA, WM, and RAS!  8-)

The reason I posted in this thread is that JWR mentioned that my strategy supports a 6% real, inflation adjusted rate of withdrawal, and I wanted to post the specific numbers that supports that statement.  To use common vernacular, my almost 11% yield portfolio supports a 4+7, 5+6, 6+5, 7+4, and 8+3 rates of withdrawal during retirement, without touching capital, as one must do for a 4+3 rate of withdrawal from a 1.75% yield market portfolio.

In fact, apply all 4 of JWRs rules to my portfolio!