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Originally Posted by Russ_Boston
Well that really depends on what your invested in doesn't it? For example my 401K has a fixed (yes I said fixed) rate choice that is currently 5.77% guaranteed to next June. So even if I took out 5.77% it wouldn't even lower the amount of principal.
The 4% is a very safe conservative number to use but everyone needs to look at their total amount, what they earn for returns, and what amount of cash they need every year.
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This is a study that you might be interested in. The executive summary and the tables are helpful, the text might not be of too much interest to a non researcher.
The point is stocks should be over 50% of your investments and you can go over the 4% limit.
http://www.fpanet.org/journal/Curren...oSuccessRates/
In case the link does not work this is from the Sept 2011 Journal of Financial Planning, Portfolio Success Rates: Where to Draw the Line