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Author: JonathanRoth Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1492  
Subject: Re: Retirement draw-down, what am i missing? Date: 3/12/2006 10:34 AM
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Don't forget about inflation. To leave the principle untouched and the income to keep pact with inflation, spend the interest/income earned less the current rate of inflation. So, if inflation is 3% and the return is 6%, there is 3% spendable, on $2M = $60k. Generally I've heard a safe after inflation rate of return being around 4%, which provides $80k on $2M.

Also consider projected lifespan when considering investment options at 60. A reasonable lifespan for an otherwise healthy person at 60 is probably 30 years or so. Thus having a significant portion of assets in stocks for capital appreciation is reasonable, which will help with inflation concerns.
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