I frequently see advice that if you invest in stocks you can safely withdraw 4% of your investments each year for retirement.If you buy 30yr treasury indexed bonds (current yield before inflation 3.88%) you can withdraw close to that with "zero" risk. If the 4% number is really the maximum safe withdrawal rate from a stock portifolio, is the extra risk of stocks worth 0.12%?I suspect in trying to make stocks a risk free retirement investment the withdrawal rate has been excessively reduced from the average stock yield rate.
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