Part 3/8:
For this analysis, we will consider a portfolio starting with 1 million dollars, divided as follows:
50% in large-cap stocks
25% in U.S. bonds
25% in cash
Historically, the average rate of return for these asset classes since 1926 has been:
10.28% for stocks
5% for bonds
3.25% for cash
Your portfolio's overall expected average return comes to approximately 7.7%, offering a balanced approach with moderate risk. A significant aspect of this retirement strategy is the method of withdrawal, set at a fixed rate of 10% per year, equating to $100,000 annually.