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Subject:  Re: Question for intercst Date:  11/21/2009  7:48 PM
Author:  intercst Number:  21737 of 116398

friar1610 asks,

FWIW, prior to the downturn, I had decided on an AA of 5% cash with the remainder split evenly between equities and fixed income. (I include my 5 year CD ladder, I Bonds and bond mutual funds as the "fixed" portion of my port.) When things were really bad, I basically "stayed the course" but bought a little bit of Vanguard Total Stock Market Index (nowhere near enough to bring the equities back to parity with bonds.) I'm now back into the low 40% range on the equity side. (Fortunately, my Navy pension plus early SS for both me and my wife means I rarely have to dip into the port.

My guess is that you have also "stayed the course" on believing in the 4% w/d rate, but just curious.

Yes, I continue to believe that limiting your retirement withdrawal to 4% of a diversified portfolio of stocks and fixed income securities offers a great measure of safety.

My own withdrawal rate has been below 4% since 1996, due to the growth of my retirement portfolio. It's about 2% today.

My asset allocation is 20% in cash and fixed income, 80% in stocks.

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