How to Set Up a Long-Term Retirement Plan

Ryan and Deborah are going to retire in the year 2000. They're both invested in the exact same portfolio, 60, 40 years old. Ryan is going to start pulling out $80,000 a year out of his portfolio. He says, you know what, I'm going to set my lifestyle at 80,000. That's where I'll live. But Deborah has started listening to some financial folks out there who say 8% is too concerned. So she sets her lifestyle at $160,000 per year,. double that of Ryan. It does show you do need to be nervous as you're starting to set up your consumption of your portfolio.