Invest
The First 5 Years of Your Income Portfolio Return is Critical to Not Running Out of Income.
By Investment Moats  •  March 15, 2025
Jeffrey Ptak, managing director at Morningstar Research have a great data-infused article on how important are returns in the first 5 years of our retirement. I don’t think this is quite surprising to me even before reading. Here is briefly what I know: Returns in income spending is important but not the most important attribute. The first 25-30% of your retirement period is the most important part. For example, if you need the income for 40 years, the first 12 years is roughly the most important. If you have a poor 12 years and failed to address them in your plan, you might… run out of money. Those challenging scenarios typically involve Early poor market returns (long or great magnitude of decline) Persistently high inflation (not one or two year inflation but a persistently high inflation period) Combination of the two above. Reducing the volatility...
Read the full article
By Investment Moats
Investment Moats is set up by Kyith Ng and have been around since 2005. He aims to share his experiences making sense of money, how money works and ways to grow his money. It hopes that by sharing his experiences, both good and bad, season investors can advice and critique his decisions and new investors can learn from them and find their own style ...
LEAVE A COMMENT
LEAVE A COMMENT

Your email address will not be published. Required fields are marked *

*

Your Email Address will not be published
*

Read More Articles
More from thefinance