U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 09-08-2019, 07:17 AM
 
73,337 posts, read 73,125,594 times
Reputation: 50926

Advertisements

Quote:
Originally Posted by galaxyhi View Post
Gee, math, I'm surprised that you, of all people, didnt see the answer to your question in my diatribe above.

BECAUSE we wont touch principle ( and interest if we can help it) for as long as possible, BEFORE withdrawing ( by any rule), will help to ensure it will last as long as we do.

Hopefully. We can continue, in one form or another, to let it grow so it CAN outlast us.

Theres your answer.

the wild card is inflation ...just because you are not actually removing money does not mean it is not being done for you by inflation ..

those unlucky retirees in 1965/1966 went from 2-4% inflation to double digits wiping away a good portion of savings with negative real returns from just the interest they were getting.they did not have to spend a thing to see major erosion .
Reply With Quote Quick reply to this message

 
Old 09-08-2019, 07:19 AM
 
73,337 posts, read 73,125,594 times
Reputation: 50926
Quote:
Originally Posted by jrkliny View Post
That is not going to happen easily. If you read the story carefully it appears those savings are "invested" at negative to less than 3% return. That has been going on for years so the money they set aside has not grown. Continuing that in the future also negates the 4% rule. Instead the OP is trying to keep withdrawals to interest only, which is close to zero.
what counts is real returns , not limiting draw to interest only .. in effect if inflation is more than you get in interest after taxes then , you are in effect losing " principal "there really is no such thing as spending interest only ... anytime you are spending the interest as well as not keeping up with inflation your principal is in effect being spent . only you are not getting anything for that spending .
Reply With Quote Quick reply to this message
 
Old 09-08-2019, 07:21 AM
 
6,517 posts, read 4,894,584 times
Reputation: 13628
Whether you have a thousands or millions of dollars set aside, it is important to have your money work for you. That means investing for the long term. Trying to grow a portfolio or even withdraw from it is not going to work well with returns of under 3%. A simple 60:40 portfolio or a single balanced mutual fund is going to do way better than twice that amount....provided you leave it alone. Any decent 401k plan should have similar suitable options.
Reply With Quote Quick reply to this message
 
Old 09-08-2019, 07:23 AM
 
73,337 posts, read 73,125,594 times
Reputation: 50926
Quote:
Originally Posted by jrkliny View Post
Whether you have a thousands or millions of dollars set aside, it is important to have your money work for you. That means investing for the long term. Trying to grow a portfolio or even withdraw from it is not going to work well with returns of under 3%. A simple 60:40 portfolio or a single balanced mutual fund is going to do way better than twice that amount....provided you leave it alone. Any decent 401k plan should have similar suitable options.
using fixed income only has held well at about 3% or so , but of of course that includes spending what you call principal as does all safe withdrawal rates ...they all assume you can hit zero in the last year . .... a 3% draw vs a 4% is a 25% pay cut .
Reply With Quote Quick reply to this message
 
Old 09-08-2019, 08:08 AM
 
Location: SoCal
14,085 posts, read 6,740,898 times
Reputation: 10765
My portfolio has grown quite well even with less than 60/40. I keep track of what I would have if I had 100/0. Just invest some even in the stock market.
Reply With Quote Quick reply to this message
 
Old 09-08-2019, 08:53 AM
 
73,337 posts, read 73,125,594 times
Reputation: 50926
he nice thing about the insight models is you always see a comparison between all the models .

the income model is 25% equities and up 9.82%

the growth and income model is 58% equities and up 14.31%

the growth model is 99 % equities and up 20.14

the sector model is up 22.15%
Reply With Quote Quick reply to this message
 
Old 09-08-2019, 09:00 AM
 
Location: SoCal
14,085 posts, read 6,740,898 times
Reputation: 10765
I keep track of the cumulative effect, not just one year.
Reply With Quote Quick reply to this message
 
Old 09-08-2019, 12:33 PM
 
73,337 posts, read 73,125,594 times
Reputation: 50926
Quote:
Originally Posted by NewbieHere View Post
I keep track of the cumulative effect, not just one year.
They do too ..they go as far back as each model started .some like the growth model started in 1987 when I did ...it is amazing to see the out performance from the sector model over decades ...compared to the growth portfolio it blew it out of the water all these years
Reply With Quote Quick reply to this message
 
Old 09-08-2019, 12:36 PM
 
Location: SoCal
14,085 posts, read 6,740,898 times
Reputation: 10765
So which one did the best?
Reply With Quote Quick reply to this message
 
Old 09-08-2019, 12:42 PM
 
73,337 posts, read 73,125,594 times
Reputation: 50926
The sector model by far ....

Since the growth model started in 1987 , 100k is worth over 3 million not adding another penny .

A total market fund is worth about 450k less .


The sector model started in 1989 and 100k is 4.4 million


The growth and income model started in 1994 and 100k is now 741k

The income model started in 1992 and 100k is worth 423k
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top