I’ve posted Article #15 to my monthly column on Valuation-Informed Indexing at the Financial Highway site, It’s called It Doesn’t Cost Much More to Have a Retirement Plan That Lasts Forever.
Juicy Excerpt: How much do you think it will change the withdrawal rate to change the portfolio balance choice so that 50 percent of the initial portfolio balance remains at the end of 30 years? No one guesses right re this one.
Lower your annual takeout from $54,000 to $50,000 and you can be 95 percent sure of having $500,000 remaining in your portfolio at the end of 30 years. Pretty cool, huh?
Let’s take it a step farther.
What if you want to have a permanent retirement plan, one that will not run our of money in 30 years or 60 years or even in 300 years or 600 years? How much more will you have to reduce spending to achieve that goal?
Guess. Again, you won’t get it right. But it’s fun to try.
It would take another $4,000 spending reduction.