Portfolio balance times annual rate of return assumption minus annual
inflation adjusted CASH FLOW= how long the portfolio is likely to last
When one retires, their investment focus typically changes from a focus on accumulating wealth to a focus on preserving wealth and creating the needed CASH FLOW to fund living expenses. Facing 25+ years of rising living costs in retirement, retirees often and eventually recognize (hopefully sooner than later) that a ‘low risk” bond strategy can actually be quite risky. For
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