Retirement Portfolio Survival: A 90-Year Study


This week’s AAII Weekly Digest highlights these “must-read” AAII articles:

  • Retirement Portfolio Survival: A 90-Year Study: While a conservative allocation lasts 35 years at a 3% withdrawal rate, higher withdrawal rates require greater exposure to stocks. The measure of success in this study is whether or not a retirement portfolio can survive intact for at least 35 years, which simulates a retiree from age 65 to age 100.
  • Retirement Withdrawal Calculator: Instead of focusing on a specific withdrawal rate to use throughout retirement, this calculator will show you how much you can afford to withdraw annually in retirement based on the amount of money you want to have left over for your estate, how many years you estimate you will be in retirement, and estimated inflation and rate of return.
  • Clueless: What Graduates Need to Know About Making Financial Decisions: Today’s college graduates are usually enthusiastic and well-trained in their discipline. But they are often clueless about financial matters. Doing nothing, however, is not an option, as this can have a detrimental effect on their financial well-being throughout their working lives and especially in retirement.
  • Don’t Underestimate Equities in Retirement: Using interest payments alone to fund one’s living expenses in retirement may have been possible in decades past when life expectancies all but guaranteed a shorter retirement and yields on the 10-year Treasury note were in the high single digits. But it is virtually impossible today in light of increasing life expectancies and the backdrop of ultra-low rates.

Our Member Question for this week is:

How closely will geopolitics be linked to market price movements over the next 12 months?

Last Week’s Results:

Are defensive corporate board tactics, such as shareholder rights/poison pill plans, good for or detrimental to shareholders?

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A Lifetime Investment Strategy

Authored by the chairman and founder of AAII, this valuable publication shows you how you can outperform professional money managers and the market over the long run. It’s not available in bookstores, but is free to all members of AAII.

The AAII Weekly Digest is one of the many benefits of AAII membership. To learn more, consider a risk-free 30-day Trial AAII Membership to start becoming an effective manager of your own assets.


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