Quote:
Originally Posted by rustyp
Your first chart (Vanguard 60/40) is a withdrawal over 8 years not 7. Thus investing in the Vanguard 60/40 over eight years yielded 1007781(ending balance) + 310367 (8 years withdrawal @ 4%) = $1,418,148.
A ten year t bill Jan 1 2007 was issued at 4.76%. Over the first eight years (same period as your chart) this would yield $1,450,654. Plus this is backed by the US government. It will be interesting to see what Vanguard 60/40 does the next two years. According to some the market is overvalued at today's P/E ratio and bonds appear to be at the low point. I do know that the that ten year T bill above will continue to accrue $141,389 more interest for the remainder of it's term (two more years).
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As long as you do not withdraw the 4% for living expenses.