No. of Recommendations: 2

I wish the annual return box would take a decimal point but oh well. My assumptions going forward with a 60/30/10 (stock/bond/cash) portfolio:

Amount: $1M
Rate of return: 3%
Rate of inflation: 0%
Monthly draw: $3,333

Retirement duration: 45 years

Go ahead. Play around with it. It's simple and pretty slick.

The REAL expected return I calculated on this portfolio goes like this: 6% for small cap and emerging market stocks. 4% for lg cap stocks. 1% for bonds. 0% for cash. So, our real return going forward would be 3.2%.

Out of our 4% annual withdrawal rate. 1% will go to all portfolio costs which are expense ratio + hidden costs + all taxes. Right now our total portfolio costs are 0.73% per year. We're leaving a fudge factor of 0.27% per year. So we will live on a NET AWR of 3%.
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