Should I Draw down on My Portfolio or Should I create a Dividend Stream

Dear readers, I have realized that I am still undecided as to which approach I should take. Both options have both advantages and disadvantages. This decision is important and should be decided on before you progress to the next phase. This will decide on how and what kind of investments you will have to make. Before I proceed further, here is what I think some of the advantages and disadvantages are.

Drawing Down on Portfolio

• Advantage
• Takes a shorter time to build.
• Requires a smaller fund to build.
• Can retire earlier without too much compromise.
• Disadvantage
• Might run out before I leave this world.
• If the Market turns sour for a few years, I will not be able to sleep without fear of losing a major portion of my portfolio.

Dividend Stream

• Advantage 
• Constant dividends that does not reduce the overall capital.
• Capital can be used as inheritance for children to continue receiving income.
• If portfolio is chosen wisely and is well balance, I will feel safe even in an event of a market downturn.
• Disadvantage
• Requires a large capital outlay to be able to achieve dividends equal to majority of my required expenses.
• Even with careful picking, companies might still stop paying dividends.
• Will still have to constantly monitor the market.          

These pointers are very general and there are many more advantages and disadvantages attached to these 2 strategies. I also have to point out that I will only, if possible, be using these dividends or draw downs to pay for my basic expenses such at utilities, phone bills, internet bills and basic necessities. As for other expenses such as holidays, eating out and stuff, I will have other streams of income such as my online business and hopefully my soon to be set up "physical" business...(not physical in that sense, but a business that is not an online thing. Having quite a mental block now so can't think properly.)

My point of view is that one should never solely rely on the stock market as it's pretty much out of your control. If possible, create more streams of income which you have more control of. These could include Blog shops, online shops, hobbies that generate money and other businesses. Things that you enjoy doing are not considered jobs...in a sense..they are more like an enjoyable activity..or a hobby. Think fishing, soccer, gardening or something along that line.

I hope to hear more about what other options I have besides these 2 and also any other advantages and disadvantages I have not listed. Which are you planning to use?

As always, save more, spend less and invest wisely.
P.