I am trying to get a sense of how low my investment portfolio will go when we hit another recession. If I can get a sense of the value of my investment portfolio, in the midst of a recession, I can then see if a 4 percent withdrawal from that investment portfolio value would at least meet my bare-bones annual spending.
I currently have a 60 percent stock and 40 percent bond asset allocation. When a recession hits, I will still maintain that asset allocation. I thought about using historical data from Vanguard Total Stock Market Index Fund Investor Shares VTSMX and Vanguard Total Bond Market Index Fund Investor Shares VBMFX, but I was not sure how to apply this historical data to find an answer to my question.
Let’s assume that my investment portfolio is currently $1,000,000 and that we are at a market high. Approximately, how low would that investment portfolio value be if I kept a 60 percent stock and 40 percent bond allocation and we have a recession similar to the one from December 2007 to June 2009?
Thank you for your insight.
I currently have a 60 percent stock and 40 percent bond asset allocation. When a recession hits, I will still maintain that asset allocation. I thought about using historical data from Vanguard Total Stock Market Index Fund Investor Shares VTSMX and Vanguard Total Bond Market Index Fund Investor Shares VBMFX, but I was not sure how to apply this historical data to find an answer to my question.
Let’s assume that my investment portfolio is currently $1,000,000 and that we are at a market high. Approximately, how low would that investment portfolio value be if I kept a 60 percent stock and 40 percent bond allocation and we have a recession similar to the one from December 2007 to June 2009?
Thank you for your insight.