Skip to main content
No. of Recommendations: 0
Greetings-

I have a question about what type of investments you should do once you decide to retire.

Should you move a percentage of your portfolio into
bonds, CD's, etc.. and live off of that interest?

Since you'd be living off of interest from your portfolio, would drops in the market affect your
standard of living while the market is in decline?

It seems that being a Foolish investor is great for
when you have 20 or 30 years to retirement.. but
what is the best setup for when you are actually living off of your portfolio?

Thanks in advance..

Print the post Back To Top
No. of Recommendations: 0
Greetings, Beserk, and welcome. You asked:

<<Should you move a percentage of your portfolio into
bonds, CD's, etc.. and live off of that interest?

Since you'd be living off of interest from your portfolio, would drops in the market affect your
standard of living while the market is in decline?

It seems that being a Foolish investor is great for
when you have 20 or 30 years to retirement.. but
what is the best setup for when you are actually living off of your portfolio?>>


For a Foolish perspective on those questions, see post 14631 on this board at http://boards.fool.com/Message.asp?id=1040013003614014&sort=postdate. It will do much to answer the concerns you have. Read it, and if you have other questions, c'mon back and ask.

Regards..Pixy
Print the post Back To Top
No. of Recommendations: 0
Pixy,

Great link! Can't wait to read the full article.

As a Fool getting ready to retire (1yr 5mo 12d) I've been estimating a conservative 4% burn rate, 3% inflation rate, and a 5 year bond ladder. That works out to roughly 85% in equities and 15% in bonds.

I was greatly encouraged by your 6% withdrawl rate. Also, keeping a greater fraction in FF means that the dividend rate will be higher, hence an even lower fraction of bonds is needed. Time to do some more calculations!

Cheers,
GW

Print the post Back To Top