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Don’t Make Me Say I Told You So 79

would be far better to plan for a longer life than to assume that
you won’t live that long and run out of money.
retirement assets
In the past, you had to make your money last for about 10 to

20 years. Now, because of earlier retirement ages, and advances
in healthcare, your retirement may last much longer. What
you’ll need when you retire is an income stream that will last 20,

30, or even 40 years. This income stream will need to grow over

time to offset the ravages of inflation. Without growth in your
portfolio, you face a risk that is a virtual certainty: purchasing-
power risk. With that in mind, let’s compare investing in stocks

vs. bonds or cash in retirement.

Returns Over Time: Stocks vs. Bonds vs.

Inflation

This chart shows the returns for various asset classes from

1926 to 2018. This data starts in 1926 because a University of
Chicago financial research group determined that 1926 was
when credible financial data became available. 1

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Chapter 3: You Must Have Growth In Your Portfolio