UnThreaded | Threaded | Whole Thread (94) | Ignore Thread Prev | Next
Author: telegraph Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75649  
Subject: Re: 30-Year Retirment at 4.5% Withdrawal Rate Date: 5/13/2007 2:13 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 2
How about 1968 to 1998? that hasn't often looked good..

but worse.....

And if I look at your 1927 on... you have two good years, followed by a lot of bad years.

If you had retired in 1929 with 1 million... or, whatever the year you have with the 14.6% drop.....

The first year.... - 14.6
so guves you
million minus 4.5% or 45K
and loss of value of 14.6% on the amount after withdrawal, giving you $815,570.



The second year -28.6 down....
Take out 4.5% leaving 778,869
and loss of value down to $556,113

The third year....down 44.5%
take out your 4.5%.....which is only now about half of what you started with......
leaving $531,088
and the loss that year is down to $294,753

ouch

and the fourth year....down 9.4%.....
your take at 4.5% is about 12.5K, and there is no inflation, so that is what you get to live on......
so we have $281,490 after your withdrawal...
and that year it loses 9.4%.... down to $255030....

NOw you are down to 25% of what you started at, both for principle and for income...... no more 45K a year....think 1/4 of that...11.7K maybe....before taxes if any.......

Down to dog food diet.......

Yes????

An all stock portfolio is very subject to any declines in the first five-7 years of retirement......

t.





Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (94) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Apple

Apple and Ninety Years Ago
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement