Jan 22
Will I Run Out of Money in Retirement?
What are the chances of running out of money in retirement? The following “movie” sets up a fictitious investor, age 35 with $50,000 in savings. The investor saves $1,000 per month. Future inflation is assumed to be 3.5%. A sample portfolio known as the “Basic” portfolio is built around an array of ETFs and three individual stocks. In this situation, there is a 50% chance the investor will run out of money by age 100 and a 10% chance by age 74, or seven years after retirement.
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Lowell Herr
Photograph: Louise taking a nap.
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