Can Well-To-Do Investors Live on 3%?

Tiger 21, sometimes billed as the investment club for the really wealthy ($10 million minimum) now has three chapters in California and two in Florida.

Coming soon, a new chapter in Dallas.

Back in March, Tiger 21 told The Wall Street Journal that members tried to spend no more than 3% of their investment earnings:

As a general rule, Tiger 21 members say they have learned 3% of assets is the maximum one can spend to live each year before stressing one's portfolio and tilting it toward short-term income over long-term gains.

That 3% figure probably assumes an investment return of 8% or so before expenses and inflation. Pretty realistic.

But are affluent investors really willing to settle for so little?

Like Sherlock Holmes, who was puzzled to learn that the dog did not bark in the night, I'm surprised to have heard no protests of the 3% figure.