No. of Recommendations: 0
this seems a little too conservative for most retirees. A 50/50 equity/bond mix would only be acceptable if a person has a large enough portfolio that he/she will only withdraw about 2.5% a year to live on.


Two questions for you:

1. Does this 2.5% assume a healthy mix of higher yielding corporates, or just bonds at the extreme end of the risk/return spectrum?

2. Was this number the result of cherry picking a date range where stocks shown? Does it include the 2000-2002 period when stocks dropped by 50%?

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