Drawing down portfolio for retirement income. Part 3 of 4In this series of four articles, I show the results ofdrawing down an initial portfolio of $1000. The examined results were for every 20-year period from 1961 to 1997 (17 such intervals).Part 3 -- Entire portfolio in stocks. S&P 500 index fund.This strategy will not support an 8% draw. You could have drawn 6%, but the lowest balance ($145) was skimmming the pavement. It doesn't look safe to me. Articles in the Wall Street Journal and other magazines suggest using 4%-5% draw.Here are some figures for 6% drawdown using S&P500:Starting balance $1,000Lowest ever year-end balance $145Median ending 20-year balance $866 (1973-1992) Total withdrawal $1,437 Total capped shortfall $455Lowest ending 20-year balance $187 (1966-1985) Total withdrawal $1,465 Total capped shortfall $428 # times hit 6% cap 19 # times hit 75% floor 14
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