BUSINESSWEEK ONLINE : JANUARY 24, 2000 ISSUE
BUSINESSWEEK INVESTOR -- THE BARKER PORTFOLIO

Making Your Nest Egg Last


Knowing how much to spend while in retirement is tricky. The answer depends more on your rate of withdrawal than on how you split your portfolio among stocks and bonds.

BIG SPENDER
If you withdraw 8% each year (adjusted annually for 3% inflation) from a portfolio of 60% stocks and 40% bonds, the odds are 21% that you won't run out of money after 20 years.

DARING INVESTOR
If your portfolio is 80% stocks and 20% bonds, the odds rise to 31%.

THRIFTY RETIREE
If you withdraw only 6% of your assets each year, the odds of not running out of dough jump to 77% for the 60-40 portfolio and 78% for the 80-20 portfolio.

DATA: T. ROWE PRICE


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TABLE: Making Your Nest Egg Last



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