“It has everything to do with what you’ve got it invested in. If you’re drawing four percent and you’ve got it all sitting in one percent accounts, you’re going to tear into the principal.
“But, if you’re drawing six or eight percent and it is growing at 10 or 11 percent on average, then you’re going to be growing your account every year and still pulling off a couple of $100,000 (£80,540).”
Mr Ramsey went on to ask if John had invested in good mutual funds which have a “long track record of 10 percent”.
In response to this, the caller revealed that he has done this and his return average is around that figure.
