Investment Strategy: What Portfolio Withdrawal Rate Can You Live With?

Investment Strategy: What Portfolio Withdrawal Rate Can You Live With?
News from Seeking Alpha:

The chart below shows the $ 1,000,000 portfolio on 1 January 1977 and its value over the next 35 years (through the most recent calendar year end). The five colored lines in the graph represent the growth of portfolio wealth at the different withdrawal rates we analyzed. For the time period from 1977 to 2011, the investor’s portfolio would have survived at withdrawal rates of 4%, 5%, and (barely) 6%.

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Now look at the next chart, which evaluates our earliest 35-year time period, between 1973 and 2007. Over this investment horizon (which began only four years earlier than the one we looked at in Exhibit 1), because of lower investment returns, we observe that only the 4% withdrawal rate holds. At 5%, the portfolio would have been exhausted by January 1998.

(click to enlarge)

In fact, for all five periods we studied, the 4% rate was th…………… continues on Seeking Alpha

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Why Buying Foreclosures Is Not A Real Estate Investing Strategy
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When it comes to hot real estate investing topics, “foreclosures” is one of the hottest buzz-words out there. We’ve had several million foreclosures since 2008, and a few million more are out there in various stages of delinquency or default.

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“Ex-Wall Street executives” as they are called in the media, have formed dozens of new capital investment companies and Real Estate Investment Trusts for the pur…………… continues on RealtyBizNews

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