mollytjm

The Wrong Way to Think About Your Retirement Portfolio

since people are living so much longer today, or at least might, it's very good advice to stick to a % of withdrawal that doesn't deplete the principle, if at all possible. a friend of mine, who has a very good job, said he didn't see why anyone needed more than a million dollars to retire on, so he is spending all the 'excess'. he's 55 now! trying to explain the shrinking nature of $ is hard, when people want to believe something else.

so that $800,000, even when taking constant %, will mean that person has to eventually scale down their standard of living unless there's some other inflow of cash. most people of moderate means will find they haven't nearly enough to live a retired life style. if you're reading this post, you may have a lot more...but in 30 years, it might be worth 1/3rd of what it's worth now, so plan accordingly in an economy where the cost of food, energy, and medical expenses will continue to climb, alarmingly.

when 65 was considered old, this wouldn't have been so much of a problem. but the entire picture has changed. if, as some medical researchers say, 120 won't be out of the question, soon, then 65 would be closer to middle age. think your retirement money will last 60 years?
it's something to really consider.