nun
Thinks s/he gets paid by the post
- Joined
- Feb 17, 2006
- Messages
- 4,872
Many retirement portfolios emphasize bond funds to avoid stock market volatility and produce income. But the 10 year Treasury bond yield is at 2.2% so in the best case scenario of no rate increase the 4% withdrawal rule looks a bit optimistic. If rates increase bond funds will decline in value further impacting the portfolio.
What, if anything, are people doing to account for these low current rates. Is staying the course with an AA the right approach? Are the classical bond heavy portfolios going to work for today's retirees. Should people be using SWRs of 3% or even lower?
What, if anything, are people doing to account for these low current rates. Is staying the course with an AA the right approach? Are the classical bond heavy portfolios going to work for today's retirees. Should people be using SWRs of 3% or even lower?