oaklanding
Dryer sheet wannabe
- Joined
- Jan 27, 2021
- Messages
- 20
I thought the recent statement (italicized below) on future market returns was an irresponsible statement by Morningstar. I've never known anyone who could predict the market. Where was the Morningstar article 10 years ago that said they anticipated that market returns would be quite high? I've subscribed to Morningstar's Premium for several years because I liked their portfolio analyzer tool, but I think I'm going to stop. I don't like the clickbait predictions. For decades I've always just invested and held. Never knew where the market was headed. Still don't. I don't think Morningstar does either.
Does the 4% Guideline Rest on a Flawed Assumption?, Christine Benz, Dec. 10
"Our recent research on safe retirement spending rates featured a flashy takeaway: Retirees who are using a fixed real withdrawal system on a balanced portfolio should start with withdrawals in the low 3% range, rather than the standard 4% guidance for starting withdrawals.
The reasoning is straightforward. The Morningstar Investment Management team expects stock and especially bond returns to be fairly modest over the next 30 years--a typical planning horizon for retirement--and they think the next 10 could be particularly weak."
Original Article:
https://www.morningstar.com/articles/1071612/does-the-4-guideline-rest-on-a-flawed-assumption
Does the 4% Guideline Rest on a Flawed Assumption?, Christine Benz, Dec. 10
"Our recent research on safe retirement spending rates featured a flashy takeaway: Retirees who are using a fixed real withdrawal system on a balanced portfolio should start with withdrawals in the low 3% range, rather than the standard 4% guidance for starting withdrawals.
The reasoning is straightforward. The Morningstar Investment Management team expects stock and especially bond returns to be fairly modest over the next 30 years--a typical planning horizon for retirement--and they think the next 10 could be particularly weak."
Original Article:
https://www.morningstar.com/articles/1071612/does-the-4-guideline-rest-on-a-flawed-assumption
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