By: Scot Blythe | Advisor.ca | February 13, 2013
Read More, and see what Scott Plaskett says about the treatment of spending from open accounts versus registered accounts.
In the early 1990s, investors could count on two things: stocks would outperform bonds over the long run; and they could withdraw 4% a year from their retirement portfolios for 30 years.
Those assumptions may no longer hold. For one thing, bonds returned more than stocks over the past 30 years. And that’s renewed calls to make bonds the foundation of retirement portfolios, even in the accumulation phase — a position championed by Boston University finance professor Zvi Bodie in a series of exchanges with Wharton School finance professor Jeremy Siegel, who originally proposed the stocks-for-the-run thesis…
