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Investing/Strategies / Retirement Investing
|Subject: Re: Income Planning Assumption||Date: 6/5/2007 6:18 PM|
|Author: TwoCybers||Number: 57788 of 81638|
Your question as stated is not answerable. You moderate level of risk might be corporate bonds, mine moderate risk might be equities.
There is a body of evidence that suggests if you would like to increase your income with say the CPI and have at least a 95% chance of not running out of money, you can withdraw in the range of 3.8 to 4.0% -- assuming you stick your money in something like 40% bonds and 60% stocks. There is futher assumption you have very low management fees --like you use index funds and buy your own fixed income.
Anybody who suggests you can do this with 9% and increases for inflation is cherry picking his retirement period to the best 20% or less of history - or else they are planning on an early death.
You can withdraw 25% if you only plan on living 3 years.
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