Tuesday, August 30, 2011

Retirement's 4% Rule: Why Mr. & Mrs. Income Don't Need It (Part 2) - Seeking Alpha

Retirement's 4% Rule: Why Mr. & Mrs. Income Don't Need It (Part 2) - Seeking Alpha: In Part 1, we saw how Mr. & Mrs. Income decided to part ways with conventional advice and target their retirement income needs years before they retired. They saved diligently, placing their money into dividend-growth stocks, a general bond fund, and later into a TIPS fund.
They never made it to $1,000,000. But they did not do badly. At the end of 2010, when their retirement started, they had $950,000 saved up. Here’s a snapshot of how each element is expected to perform. The stock numbers are blended, meaning that they indicate total performance across the stock portfolio.

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