Odds you’ll save enough to retire? 50/50
July 3, 2013
FreeNewsPos.com-The reason why the success rate is so poor has to do with the current state of things, according to the authors of the paper, David Blanchett, the head of retirement research at Morningstar Investment Management, Michael Finke, a professor and Ph.D. coordinator at the department of personal financial planning at Texas Tech University, and Wade Pfau, a professor of retirement income at the American College.
On paper, given the current state of the stock and bond markets, you’ve got less-than 50% chance that your money will last over the course of 30 years in retirement if you start out by withdrawing 4% per year from a 40% stocks, 60% bonds portfolio.
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The reason why the success rate is so poor has to do with the current state of things, according to the authors of the paper, David Blanchett, the head of retirement research at Morningstar Investment Management, Michael Finke, a professor and Ph.D. coordinator at the department of personal financial planning at Texas Tech University, and Wade Pfau, a professor of retirement income at the American College.