If you had retired with $1 million and invested in a typical 60% stock, 40% bond allocation, withdrawing 5% each year with a 3% cost-of-living increase, how would you have ended up 30 years later?
Thirty years sounds like a long time, but many people do outlive that… and their money.
The folks at Franklin Templeton ran an analysis of two hypothetical investors. One retiring in 1966 and the other in 1967 – both with the numbers outlined above.
The results were quite different! Our 1966 retiree ended up broke, while the one who retired in 1967 ended up with more than $2 million, even after all the withdrawals!
So, how do you predict which is the best year to retire? Well, you can’t. But, you can install some guardrails for your retirement nest egg. You might find my webinar on this subject helpful. You can register here.