Ineffective, or at least, inefficient strategies to withdraw money from your investable assets during retirement are keeping 100% of your "nest egg" in stocks (obviously) but also keeping 100% of your "nest egg" in CD'S, money markets, bonds (even if TIPS and I-Bonds and other inflation-protected securities are used) and other fixed income vehicles.
Study after study has proven that an allocation to stocks of at least 25% and, preferably, 40% or more to stocks are required when withdrawing an income from your portfolio.
The less the percentage in stocks, the less the safe withdrawal rate becomes going to as low as 2.4% if you want no stock exposure and want your money to last 30 years. If you want that money to last 40 years then 1.8% becomes the safe withdrawal rate.
An Introduction
Hi. Welcome to BourGroup and my blog. Phil
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.