Scott Burn's article today by above title shows that most portfolios mimicking balanced funds and withdrawing an inflation-adjusted 4% during the past 51 months would be show an average lost of 15% of the beginning value. My guess is that most people do not strictly adhere to the 4% adjusted for inflation rule. I'm curious how people who are living solely off there portfolios handle the great uncertainty of investment returns. It seems to me that one really needs to take no more than 3% out per year if he/she has a long retirement horizon. Alternatively, if one believes expenses decreases with age one could take out 6 or 7% of initial portfolio value and not increase this with inflation.
Has Your Portfolio Recovered Yet? - Registered Investment Advisor
Has Your Portfolio Recovered Yet? - Registered Investment Advisor