I always see people discussing different SWR but my goal has always been to get to a point where I never actually withdrawal any of the principal but rather live off cashflow from dividends, REITs, and real estate partnerships. In fact, my goal is to only spend half of the cashflow from investments each year and invest the other half so that the nest egg continues to grow and I can increase my annual spend as my cash flows will continue to grow annually. If I cash flow $600k/annually from investments but only spend half that and invest the other $300k, that will likely spit off say $615k the following year and $630k the next, etc etc.

This is also how I want to leave my assets to my heirs, with a directive to take 50% and spend as they please on pleasure, starting a business, or education. The remaining 50% would be invested and continue to grow for further generations.

Does anyone else have a similar thought process? Will you all please poke holes in this and tell me why I shouldn’t be thinking this way for myself in RE and why it may be a bad thing to set it up this way for my heirs as well?