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Guggenheim S&P Global Water ETF Message Board

  • roberts1001 roberts1001 Dec 15, 2004 10:06 AM Flag

    Question: investing during retirement

    I'd be interested in hearing the thoughts of this board on investing during retirement. What would you recommend for the following situation?

    Retired couple, age 65, with the mortgage paid off and having $500,000 to invest, all in a taxable account. Social security income of $10K, currently spending $40/yr for living expenses, including taxes. Expected inflation of 3%/yr. How would you recommend they invest the $500,000?

    What I was aiming for here was someone needing to earn inflation plus 5% and not being able to tolerate much volatility. By my arithmetic, if the above couple averaged inflation plus 5%/yr, they would run out of money in 37 yrs, even without a bad investment year or unexpected expenses, so the assets I specified are a bit low. The real question I wanted was, can someone count on inflation plus 5%? If not, what can they count on earning, and how must they invest?

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