Buffett said a 5% "Berkshire share" withdrawal rate will last a very, very long time.

I agree.
That would be my "go to" suggestion for someone younger, where a positive rate of return matters.
But there exists a certain age at which the high payout of an annuity, and the way it covers longevity risk, becomes very compelling, even if it has a negative net present value.

If you want to fund a retirement starting at (say) age 55, you really want a positive internal rate of return for the bulk of the money. There are enough decades for it to really matter.
That's when I'd lean more towards a temporally split strategy, e.g. gradual equity liquidation formula 55-85 (sorta linear run-down to zero), and an annuity thereafter.
e.g., the 55 year old might put 85-90% into BRK or other good equities, and 10-15% into 30 year TIPS to fund the annuity or annuities when they mature.

Jim

Retirement Investing FAQ

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