Learn about the Four Asset Portfolio for Growth and Income in Retirement
Does Wall Street's 4% retirement withdraw rule still work in retirement???
If you are 2-10 years from retirement, you need to be realistic, and assume a much more defensive position. It’s never what you “make on paper, it’s what you keep”, and as the old wall street axiom goes, “Hogs get fed, pigs get slaughtered “(see “arithmetic of loss”)
At 50-65, you are no longer “long term”. Your time horizon is compressed, and you don’t have the time to recover from a big loss. (See “sequence risk” section.)
All retirement planning is “retirement income planning”. Income is the end game, replacing the check you will no longer receive from your employer.
What mix of Cash: minimum of 6 months of expenses; Guaranteed income: social security, pensions and/or fixed index annuities with a guaranteed income rider (a pension replacement) securities (stocks and/or The Four Asset Portfolio for Growth and Income in Retirement.