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URL:  https://boards.fool.com/retirement-port-behavior-2000-2010-28993279.aspx

Subject:  Retirement Port Behavior 2000-2010 Date:  12/31/2010  9:02 AM
Author:  temsike Number:  68037 of 93632

This is a look at a real retirement port's behavior and its benchmark after the wrenching bear markets of 2000 and 2008. All values are nominal (non-inflation adjusted).

If you want to see how this port would have performed with annual withdrawals, you need to add an AWR (e.g. 4%). To see how it would have performed in real, inflation adjusted numbers, you need to add an inflation rate (e.g. 3%).

Years: 2000-2010 CAGR: 6.1 SD: 22.6 Benchmark: VTI CAGR: 3.2 SD: 20.5

Comment: It took our port 5 years to re-cooperate its nominal value on Dec 30, 1999. From 2000-2005, AA was 90/0/10. Changed to 60/30/10 for 2006-2008. Changed to 70/25/5 for 2009. Changed to 60/30/10 for 2010. For 2011 AA will start at 60/30/10. It took VTI 7 years to re-cooperate its nominal value on Dec 30, 1999.

Years: 2008-2010 CAGR: 9.0 SD: 27.0 Benchmark: VTI CAGR: 3.1 SD: 28.8

Comment: It took our port 1 year to re-cooperate its nominal value on Dec 28, 2007. For 2008, AA 60/30/10. For 2009, AA 70/25/5. For 2010, AA 60/30/10. For 2011 AA will start at 60/30/10. Benchmark VTI still hasn't recovered its nominal value on Dec 28, 2007. It still needs to gain about 5% in 2011 to re-cover par on that date.
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