Planning for Retirement: How to Allocate Your Stocks/Bonds/Cash [View article]
Hi Roger:
You seem to be saying that the amoount that you can plan on drawing has nothing to do with how you allocate:
"My view on taking income from a portfolio is that a person needs the portfolio to create a certain number. If that number is reasonable, 5% or less, then the mix (assuming something close to normal) can be more about tolerances than numbers. Even a 60/40 mix will give a good chance of providing enough growth."
Asset allocation matters a great deal--- unless you are willing to throw pretty much all the research on this topic in the trash. Bill Bernstein and many other authors, including myself, may agree that a 4% is pretty safe if you have a 60/40 portfolio but most people want to be smarter about it.
Now, perhaps you are simply making the point that a 4% draw is probably okay with a 60/40 portfolio--is that your point? Am I misunderstanding here?
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Hi Roger:
Apr 09 11:49 am
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All Comments by Geoff Considine »Planning for Retirement: How to Allocate Your Stocks/Bonds/Cash [View article]
You seem to be saying that the amoount that you can plan on drawing has nothing to do with how you allocate:
"My view on taking income from a portfolio is that a person needs the portfolio to create a certain number. If that number is reasonable, 5% or less, then the mix (assuming something close to normal) can be more about tolerances than numbers. Even a 60/40 mix will give a good chance of providing enough growth."
Asset allocation matters a great deal--- unless you are willing to throw pretty much all the research on this topic in the trash. Bill Bernstein and many other authors, including myself, may agree that a 4% is pretty safe if you have a 60/40 portfolio but most people want to be smarter about it.
Now, perhaps you are simply making the point that a 4% draw is probably okay with a 60/40 portfolio--is that your point? Am I misunderstanding here?