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<<In this case, we see that the 100% equities position went bankrupt (1981) BEFORE the GG (1983) portfolio. More importantly you still have $9170/year for the rest of your life. It is not much better than the 100% equities position, but I'll take what I can get.

Any comments??>>

Good post. Without checking your math, I agree as far as the comparison with the S&P 500 index. In fairness, though, we should point out that investing 100% in the Dogs of the Dow (or the Highest Yielding 10) would have increased your income with inflation through 1989 before busting in 1990. And the Beat the Dow Four and the Foolish Four did so through the end of 1995, where they ended up with a remaining portfolio of about $300K and $1.3M, respectively. In short, 100% invested in either over that 30-year span through four significant bear markets would let your 70-year-old live right comfortably until 95 and still leave money left over. Any of the three would have far outlasted the annuity approach.

Bottom line: Ya makes your choices and ya lives with the results. :-)

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