No. of Recommendations: 4
Which is fine while you are in the accumulation phase, but what if you would have needed to sell equities to cover expenses for retirement in 2010. 2011 and 2012? Life can be different when your savings are funding your retirement and you are outside the accumulation phased and more concerned about decumlating (or diminishing) your assets.


We can tease that information out of the same spreadsheet.

Beginning with $10,000 on 1/1/2008, 4% SWR (using CPI inflation) (monthly withdrawals), final values on 12/21/2012 (5 years).

100/0: $8,226
60/40: $8,948
Not much difference. Some, not a lot.

Ah, but ending on 12/21/2011 (4 years):
100/0: $7,488
60/40: $8,522

Retirement decumulation is a marathon not a sprint (you just have to not fall on your face during the run), so for a longer period ending 12/31/2016 (9 years):
100/0: $11,525
60/40: $10,654

The low point could be a bit scary, though:
Low point (on 2/2/2009):
100/0: $4,843
60/40: $6,535
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