As mentioned in a recent post, stress testing the portfolio is one useful method of checking to see if there will be sufficient funds available to comfortably retire. In this QPP analysis of a simple five ETF portfolio we will make some initial assumptions that will vary from investor to investor.
Assume this investor is 50 and plans to retire at age 67. The current portfolio is valued at $400,000 and $6,000 is added each year. Inflation is set at 3.5% and the S&P 500 is projected to grow at 7.0% each year.