09 Jan 2007, Posted by Lance in General, No Comments.

Will It Last?

Kimber over at No Limits Ladies posted today on guidance
from Jim Cramer, Cramer’s advice is to be heavy into equities or aggressive
investments in your 20’s and 30’s and then start moving more towards Fixed
Income investments closer to retirement.

My only complaint with Cramer’s advice is that those of us
who retire in our 40’s or 50’s will need this money for the next 30-40
years. Will fixed income investments
continue to grow as we start to withdrawal funds? Will our nest egg last because of our early
retirement? Will inflation eat away the
fixed income over time?

I talk with many retirees who are now living off their
investments and most of them are still 60/40 or 70/30 between stocks and fixed
income simply because they know they will need to continue to retain growth
during retirement.

Work Less, Live More talks about this same issue and how to
overcome it. Using the 4% Withdrawal Rule and Proper Asset Allocation, your egg will not only last but
thrive.

Just another opinion