Welcome to the third episode in our four-part series exploring radical investment strategies—going “all in” with an all-equity portfolio versus choosing a balanced approach of 60% equities and 40% bonds.

In our first two episodes, we focused on the accumulation years—how these portfolios grew wealth from the early stages of investing to the point of retirement. Today, we shift gears to ask the big question: What happens when it’s time to start taking money out?


Using 55 years of historical data from 1970–2024, Paul Merriman compares:

  • All S&P 500 Portfolio: The high-growth but high-risk approach
  • 60/40 Portfolio: A balanced strategy blending stocks and bonds

This episode digs into the distribution phase, showing how these portfolios handled major market downturns and sustained income over decades.


What We Cover

  • Recap of Accumulation Findings: Performance leading up to retirement using:
  • Table B1: Fine-Tuning Table for S&P 500 Equity Portfolio
  • Table H2: 60/40 Balanced Portfolio Data
  • Table H2A: 100% Equity Portfolio Data
  • Retirement Withdrawals: Real numbers from Table D1.4 with fixed distributions of $40,000 per year, inflation-adjusted
  • Market Volatility: The impact of big crashes like 1973–74, 2000–2002, and 2008 on retirement income
  • Bond Protection: Why bonds served as a shock absorber when markets crashed
  • Lessons for Investors: Understanding risk, return, and the emotional side of staying the course

Key Takeaways

  • All-equity portfolios can build bigger balances—but they also expose retirees to deep, gut-wrenching losses when markets collapse.
  • A 60/40 approach often produces steadier, more predictable income, sometimes finishing with more wealth despite slower growth in good years.
  • Historical data offers valuable lessons, but it also reminds us that the future will bring its own surprises—making diversification critical.

Whether you’re decades from retirement or already in it, this episode will help you understand the trade-offs between growth and stability when you start living off your investments.

Next week, Paul will analyze the U.S. 4 Fund Strategy for retirement withdrawals.