1. is it 5% adjusted for inflation or 5% fastened?
2. “acceptable of my age” just isn’t actually the precise query as a result of age is kinda irrelevant. There are some 30 yr olds who’re 100% in shares and different 30 yr olds who’re afraid of danger. Similar goes for 73 yr olds. They are not all the identical. It is a person choice. I recommend you determine your want, skill, and willingness to take danger. Learn extra right here:
How a lot danger do you want to take: https://www.cbsnews.com/news/asset-allo … -you-need/
How a lot danger do you’ve got the skill to take: https://www.cbsnews.com/news/asset-allo … -you-take/
How a lot danger do you’ve got the willingness to take: https://www.cbsnews.com/news/asset-allo … tolerance/
How you can take care of conflicts between the necessity, skill and willingness to take danger: https://www.cbsnews.com/news/asset-allo … ing-goals/
3. relating to the willingness which I believe you could be asking about, separate from is 5% withdrawal too dangerous for a 73 yr outdated, you must all the time be ready for the sorts of losses if shares lose 50% as a result of these have been the losses within the Nice Recession when shares final misplaced 50% (and isn’t too totally different from the opposite instances shares misplaced 50%):
1973-1974 Bear market efficiency:
Fairness Publicity……. Max loss
20%…………………………………5%
30%……………………………….10%
40%……………………………….15%
50%……………………………….20%
60%……………………………….25%
70%……………………………….30%
80%……………………………… 35%
90%……………………………… 40%
100%……………………… …… 50%
Knowledge supplied by Creator Larry Swedroe on Morningstar’s ‘Bogleheads Unite’ Discussion board
So you must at the very least be ready in your portfolio to drop between 15%-20% for a 40/60 portfolio to 25%-30% for a 60/40 portfolio.
