.05% would only net you $50,000 annually...Scott Burns, the personal investment writer for the Dallas Morning News, has written quite extensively over the years about the correct rate of withdrawal for portfolio survival. He recommends an original 4%-4.5% rate, with increases each year based on inflation. That rate gives you a very good chance you won't run out of money in 30 years. Here's a brief description of his recommendation. There are many other articles available through his website.
You can invest in good growth Mutual Funds and easily outperform the S&P 500, and even in today's economy get between 10-15% annual return. Originally Posted by KenAdams
- googol^googol
- 06-20-2011, 06:33 PM
- KenAdams
- 06-20-2011, 06:46 PM
Scott Burns, the personal investment writer for the Dallas Morning News, has written quite extensively over the years about the correct rate of withdrawal for portfolio survival. He recommends an original 4%-4.5% rate, with increases each year based on inflation. That rate gives you a very good chance you won't run out of money in 30 years. Here's a brief description of his recommendation. There are many other articles available through his website. Originally Posted by googol^googolTrue, but you're quoting a rate of withdrawal from the portfolio. I'm referring to an annualized return on investment. I believe the person who I was originally responding to had made a decimal error. .05% is horrid performance, especially with a $100M bankroll. That kind of money opens up investment options that $100K cannot even fathom.
If I can get a 10% return on $100M, I'll never touch the original investment. If one cannot live off $10M a year, then there's not much hope for them.
- shorty
- 06-20-2011, 09:26 PM
Somehow, I think I would still run out of money each year, after 52 weekend date's plus setting up 4 ATF provider's.