(Source: www.obliviousinvestor.com )
Spending from your portfolio in retirement is always a balancing act between two competing goals:
> Minimize the likelihood of depleting your portfolio during your lifetime (i.e., don’t overspend), and Have as high a standard of living as possible (i.e., don’t underspend and end up with a giant pile of unspent money when you die). In a recent paper David Blanchett of Morningstar looked at how that balancing act is affected by the portion of your spending that comes from guaranteed sources (e.g., Social Security, pension, lifetime annuities) as opposed to from a portfolio of stocks/bonds with […]
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