Retirement Portfolio Choices—and Consequences—Over 50 Years

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Maximum Initial Withdrawal Rate: A Historical Perspective

The longevity of a retirement portfolio is dramatically influenced by the initial withdrawal rate. The commonly cited safe rate of 4% is clearly a cautious guideline—as it should be. But what does history tell us about the range of sustainable withdrawal rates on a portfolio that must last 25 years?

Equity: The Inflation Buster in Retirement Portfolios

Naturally, retirees want their withdrawals to keep pace with inflation so that they maintain their purchasing power. What portfolio allocation and withdrawal method best meet this demand—and other considerations?

The Impact of Decreasing Retirement Spending on Safe Withdrawal Rates

Safe withdrawal rates typically assume retirees maintain a stable standard of living. But new studies show that spending declines throughout retirement by as much as 1%-2% per year. This discrepancy may cause us to be underestimating the safe withdrawal rate.