In the February 2008 issue of Consumer reports there is an article entitled "12 Money Mistakes That Could Cost You $1,000,000 (pg 16)
#1 was....Investing too conservatively during retirement. The Consumer Reports Money lab and Ibbotson Associates, a Chicago investment research firm analyzed how well a range of stock and bond portfolios would have performed using data from 1940 to 2006. They assumed an investor retired at 65 with 500,000 to invest and a 3% withdrawal rate. They ran it over a variety of 20-35 year periods from 1940 to 2006 and found an all stock portfolio provided the investor with $750,000 more than an all bond one.
Their conclusion is that you should weigh your asset mix as heavily toward stock as your comfort level allows during retirement.
So what do you guys think?
#1 was....Investing too conservatively during retirement. The Consumer Reports Money lab and Ibbotson Associates, a Chicago investment research firm analyzed how well a range of stock and bond portfolios would have performed using data from 1940 to 2006. They assumed an investor retired at 65 with 500,000 to invest and a 3% withdrawal rate. They ran it over a variety of 20-35 year periods from 1940 to 2006 and found an all stock portfolio provided the investor with $750,000 more than an all bond one.
Their conclusion is that you should weigh your asset mix as heavily toward stock as your comfort level allows during retirement.
So what do you guys think?