Ready
Thinks s/he gets paid by the post
DH and I have been doing some financial planning lately which has required us to think about future portfolio returns. He is retired, but will receive income from his former company for ten more years, at which point he will turn 65. His income is enough to cover our bills entirely, so any SWR projections we need to think about would be based on whatever our portfolio is worth ten years from now.
He has the option of taking another job to earn extra income, and he keeps asking me if we have enough now, or if he should look for some part time work. My challenge is trying to figure out how much our portfolio will be worth in ten years, and what income a 3-4% SWR would generate for us on the portfolio's ten year from now valuation.
Historically a 60/40 portfolio, all index funds, periodically rebalanced, yields about 8%. However, trying to crystal ball what the returns over the next ten years might be, especially with interest rates currently being so low, is a bit challenging.
I know nobody here has a crystal ball, but what range of returns would you all consider using in doing this forecasting exercise? A very low rate would suggest that DH doing some part time work makes sense, so it has a bit of impact on lifestyle to assume very low numbers.
He has the option of taking another job to earn extra income, and he keeps asking me if we have enough now, or if he should look for some part time work. My challenge is trying to figure out how much our portfolio will be worth in ten years, and what income a 3-4% SWR would generate for us on the portfolio's ten year from now valuation.
Historically a 60/40 portfolio, all index funds, periodically rebalanced, yields about 8%. However, trying to crystal ball what the returns over the next ten years might be, especially with interest rates currently being so low, is a bit challenging.
I know nobody here has a crystal ball, but what range of returns would you all consider using in doing this forecasting exercise? A very low rate would suggest that DH doing some part time work makes sense, so it has a bit of impact on lifestyle to assume very low numbers.