No. of Recommendations: 0
John,

<<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. :-)

Regards.....Pixy
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.