In "The New Retirement", Dr. Sherry Cooper endorses a 50/50 bond/equity allocation during retirement based on a 4-5% withdrawal rate for approximately 30 years.
In "The New Retirement", Dr. Sherry Cooper endorses a 50/50 bond/equity allocation during retirement based on a 4-5% withdrawal rate for approximately 30 years.Let's say you got enough saved and you are ready to retire. Would you:
A) Convert everything to fixed income even if you would not need all of it.
B) Keep the 100 - age, asset allocation ratio (or whatever ratio you use).
C) Convert enough to fixed income to generate retirement income, leave the rest in equity.
D) Move everything to equity
I haven't thought this through yet, but my answer would probably be C. I'm hoping for an early retirement with a 60/40 stock/bond split throwing off enough income to support us.Let's say you got enough saved and you are ready to retire. Would you:
A) Convert everything to fixed income even if you would not need all of it.
B) Keep the 100 - age, asset allocation ratio (or whatever ratio you use).
C) Convert enough to fixed income to generate retirement income, leave the rest in equity.
D) Move everything to equity
Does that mean that the 40% would be enough to generate enough income for you?I haven't thought this through yet, but my answer would probably be C. I'm hoping for an early retirement with a 60/40 stock/bond split throwing off enough income to support us.
Plus the dividend income thrown out by the stock portion. I am hoping the entire portfolio will provide a yield of around 3%. That's my thinking now anyway but our retirement is more than 20 years away.Does that mean that the 40% would be enough to generate enough income for you?
What portfolioLet's say you got enough saved and you are ready to retire. Would you:
A) Convert everything to fixed income even if you would not need all of it.
B) Keep the 100 - age, asset allocation ratio (or whatever ratio you use).
C) Convert enough to fixed income to generate retirement income, leave the rest in equity.
D) Move everything to equity