«And the further reality is that if I * did * lack personal integrity, I could have made this all stop just by saying the meaningless sentence you want so desperately to hear: «I think the errors in
the traditional safe withdrawal rate studies must be corrected by using Rob's analytically valid method.»
Traditional Safe Withdrawal Rate studies fail miserably by not taking valuations into account.
Not exact matches
The
traditional claim of 4.0 % associated with a fixed allocation of stocks and commercial paper corresponds most closely to a Calculated Rate, not a
Safe Withdrawal Rate.
Shifting stock and bond allocations gradually in accordance with P / E10 greatly improves the
safe withdrawal rates of
traditional stock and bond portfolios.
Most research into
safe withdrawal rates has been based on
traditional stock and bond portfolios, but Bengen is a staunch advocate of using annuities if finances start to get tight.
At P / E10 = 14, with an 80 % to 100 % stock allocation, the
traditional Year 30
Safe Withdrawal Rate is below 6 %.
This is the
traditional continuing
Safe Withdrawal Rate.
Plus using the
traditional methods is
safer than trying to save a couple of bucks or a day more for the
withdrawals.