No. of Recommendations: 1
I work with a financial planner on my Mom's retirement nest egg. He has her on a 60% stock and 40% bonds plan and is comfortable with her spending 5% of the initial asset balance adjusted for inflation. His point is that this mixture over time has historical returns of 8%, which should allow for some special one-time withdrawals to buy a car, go on vacation, etc. without screwing up the long-term needs. Three years into it, her balance is grown and reduced her effective withdrawal rate to the equivalent of 4.5%. She did get started when the market was down.
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