I personally don’t care for either but the “battle” is still worth a read.
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Funnilly enough, I saw this last night. He’s a NINE- percenter! (9%)
The take-away:
But “Shark Tank” tough guy Kevin O’Leary says to hold on — you can retire with just $500,000 — a big difference from the $5 million he suggested last August…
O’Leary’s logic is that you can make about 5% in fixed income with little risk, but if you only have $500,000, that amounts to $25,000 per year. If you are willing to ride the volatility, you can invest in equities, providing up to a 9% return or about $45,000 annually.
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Sure, in 2024 but you could not do that in 2019 - and you likely won’t be able to do that in 2027.
And even if you could, that 5% does not adjust for inflation.
One wonders how otherwise smart and success investors can become so detached from reality.
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It’s astounding. It’s like they never heard of inflation and volatility. All the studies that result in safe withdrawal rates specifically take both those into account. I mean, it’s like some of these people truly believe that there can never again be a string of bad years in a row!
Hmmm…? Maybe I’d ask: So, when did you have your last “bad year”? Maybe that explains it?
That’s the difference between being an arithmetic-based financial planner (i.e. 4%) and a “personal finance entertainer”.
intercst
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