His portfolio lasted 24 years, whereas a portfolio invested in 50percentt stocks and 50percentt bonds ran out of money after 20 years, and an all-bond portfolio ran dry after 12 years.
Of course, it wasn't, and Portfolio lasted only 21 issues.
But there's a 100percentt chance of the money lasting that long with a portfolio that's composed of 75percentt U.S. equities and 25percentt bonds (using conservative assumptions).
Eight of Tandem's last nine portfolio companies have received positive liquidity or additional funding at stepped-up valuations while working with the incubator.
There will come a time when net redemptions in mutual funds will force the sale of these types of issues, but Microsoft will probably be the last thing portfolio managers give up.
But, he added, "There also is enough development work in our portfolio to last a lifetime".
At an initial withdrawal rate of 4percentt, however, the portfolio would last for 20 more years, until 2033.
Such a portfolio will last for 40 years, provided certain "guardrails" are observed, and can provide a major part of a retiree's income, said Mr. Guyton, who has written about safe withdrawal rates for The Journal of Financial Planning.
Fidelity and Vanguard are working from research that says portfolios can last for decades if retirees start with conservative withdrawal rates and make adjustments, usually up but sometimes down, depending on performance.
According to the analysis, most of the time, the portfolio would have lasted longer than 30 years, and sometimes significantly longer.
