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Does part of your plan involve doing something about inflation? If you succeed in growing the balance by a net 2% per year, you may end up with less spending power when you reach 59½. That's why stocks are an important component of a portfolio that needs to last for a while. The safe withdrawl rate is much lower for a no-stock portfolio.

If you have stocks in another account, then never mind.


Inflation is my biggest worry and is the main reason that I didn't take the company pension. Fixed income for life sounds pretty good until you really think about it.

With the rollover, I invested 35% of the lump-sum in equities and have the potential of at least partially keeping up with inflation. That's what the 2% growth is about. Yes, 2% won't match inflation but it's better than zero.

I do have some stock in other accounts and we also have increasing income from rental properties to help deal with inflation. Also, in 13 years, I'll be 62 and get Social Security and that will help a lot.

Thanks for asking.

CG
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