PT  - JOURNAL ARTICLE
AU  - Matthew B. Kenigsberg
TI  - Investment Performance, Inflation, and Taxes:<br/>
               <em>Redefining History’s Bear Markets</em>
AID  - 10.3905/jor.2013.1.1.110
DP  - 2013 Jun 30
TA  - The Journal of Retirement
PG  - 123--123
VI  - 1
IP  - 1
4099  - https://pm-research.com/content/1/1/123.short
4100  - https://pm-research.com/content/1/1/123.full
AB  - Contrary to conventional wisdom, the worst 10-year period for a 60/40 portfolio may not have come during the 1930s. If one includes the effects of taxes and inflation, that point came in 1972–1981, when a spike in taxes and inflation drove post-tax real returns to their nadir. The 1940s also saw very poor performance on a post-tax real basis. Withdrawals from investment accounts tend to amplify the impact of taxes and inflation, and their interaction can have a dire effect on one’s qualified accounts. Retirement simulations show that strategies to combat the effects of taxes and inflation can be critical to the success of a retirement plan that includes qualified assets.TOPICS: Performance measurement, retirement, portfolio theory