Outside the Box

Destitute At 80: Retiring In Secular Cycles

John Mauldin

February 12, 2007

Does the concept of retirement sound scary? If it does don't feel that you're alone. A lot of issues and concerns come along with the subject, the most familiar of which is financial freedom. Even after you have saved a substantial nest egg, it can be difficult to plan out your withdrawal strategy when presented with several unknown variables such as life expectancy and rate of return.

Today's Outside the Box is by my good friend and the always fascinating analyst, Ed Easterling. Ed has written a very well researched article on how to structure a portfolio and plan for retirement. How much of your retirement portfolio can you withdraw each year? It may not be as much as you think if you want to be sure that your money outlives you. Ed covers some of the inherent risks and describes several scenarios that people face. For those of you unfamiliar with Ed, he is the author of Unexpected Returns: Understanding Secular Stock Market Cycles, President of an investment management and research firm, and a member of the adjunct faculty at SMU's Cox School of Business. You can read more about him and his research at www.crestmontresearch.com.

Whether young or old, retirement is a point in life that we all must face. I believe that you will find Ed's article to be an engaging view on how to properly prepare for and plan out your retirement.

John Mauldin, Editor
Outside the Box

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Destitute At 80: Retiring In Secular Cycles

By Ed Easterling, January 12, 2007

There has never been a thirty-year period for the stock market when investors have lost money; yet there have quite a few thirty-year periods that have bankrupted senior citizens who were relying upon their stock portfolios for retirement income.

THE GOLDEN GOOSE

Whether you are there now or saving to be there one day, retirement for many is that time when…

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