Will It Last?

Kimber over at No Limits Ladies  posted today on guidancefrom 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 :)