September 6, 2016 • Page 3 of 6
No. 4. Don’t avoid risk: Minimize risk.
The probability of higher risk investments outperforming riskless investments increases with time. As a rough rule of thumb, the average retiree will need to have about 30 percent to 40 percent of his or her portfolio in equities to have an income that can keep pace with inflation and have a beginning withdrawal rate of 4.5 percent. First « 1 2 3 4 5 6 » Next
The probability of higher risk investments outperforming riskless investments increases with time. As a rough rule of thumb, the average retiree will need to have about 30 percent to 40 percent of his or her portfolio in equities to have an income that can keep pace with inflation and have a beginning withdrawal rate of 4.5 percent.
Please log back in before proceeding.
There was an error logging in. Please try again.
Congrats! You are now logged in. Your exam is being submitted.