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Subject:  Re: Income Planning Assumption Date:  6/5/2007  6:18 PM
Author:  TwoCybers Number:  57788 of 88077

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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