The Motley Fool Discussion Boards
Investing/Strategies / Retirement Investing
|Subject: Re: Asset Allocation||Date: 4/6/2006 3:54 PM|
|Author: TwoCybers||Number: 50939 of 82859|
AM you may be asking the wrong question -- I suggest the more important question is "How much money can I get from my current retirement nest egg without running out of money?" -- Technically you need to say how long you expect to live on the money --
But if you basically want to be certain of not running out of money and being able to increase for the official, government cost of living increases (the CPI) -- the answer is in the range of 4.0 to 4.5% -- So if you have $400,000 --- you can expect to withdraw $16,000 to $18,000 in the first year -- and increase with the CPI. In order to make this work you need to invest about 60% of your money in something like and Index fund and 40% in bonds/CDs.
There is a whole lot of information on this at:
|Copyright 1996-2017 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|