[quote=sdrealtor]Over the last 10 years 4% is too high. I have personally managed a portfolio in the ranges of values we have been talking about for a retiree over the last 10 years and know what the returns have been. We werent invested in stocks until the last year or so. We’ve done well by investing in high quality/high yield dividend stocks that came into favor several months after we got into them. Otherwise returns were minimal at best in asset classes appropriate for a retiree.

It wasnt until we realized the benefiary couldnt possibly outlive their assets and started taking on risks more appropriate for the eventual heirs did we get above and beyond 4%.[/quote]

You don’t need to know anything about investments and still could easily achieve/exceed an average of 4% returns for the last ten years using nothing more than following the ben stein’s couch potato portfolio.

Total Intl Stock: 6.8%
Total Bond: 5.45%
Total Stock: 4.9%

So if anything, a 4% annualized returns for the last 10 years is too low.