Sentences with phrase «continuing withdrawal rates»

Continuing Withdrawal Rates varied from 6.64 % to 7.35 % (plus inflation).

In addition, continuing withdrawal rates can safely exceed 5 % of the original balance (plus inflation) by optimizing allocations.

Notes starting from July 18, 2009 Notes starting from June 25, 2009 include: Statistical Sameness; Rob Bennett on ABC; Lesson From Switching C; Understanding Switching D; DVY Continues to Disappoint; Opaque; Take 6 %; Take 6 % with Valuation Informed Indexing; Continuing Withdrawal Rates (July 2009); Looking at DVY; Failed Already; Lessons from the SWR Translator; Year 2000 Investments; Year 2000 Return Sequence; Permission Granted; Benjamin Graham on Timing; Computers and Timing; Exciting Conversation; Index Fund Comparisons; From the SWR Translator Graphs; Finite Liquidation Strategies; Investor's Prayer.

Continuing Withdrawal Rates (July 2009)

The continuing withdrawal rates are: 1) Between 6.0 % and 6.5 % (plus inflation) for traditional retirees who use a traditional, low cost annuity.

The continuing withdrawal rate turned out to be 6.77 %.

Assuming that ADVDX continues to survive and perform similarly to how it has in the past, it can help bring up a dividend blend portfolio to a continuing withdrawal rate of 6.77 %.

From this, I conclude that the continuing withdrawal rate is 6.1 % of the original balance (plus inflation).

The continuing withdrawal rate at today's valuations is 6 % of the CURRENT balance of the portfolio.

The continuing withdrawal rate is 4.4 % if you sell stocks for income using a stock and TIPS portfolio.

Using a 40 % allocation for Investment A, 40 % for Investment B and 20 % for TIPS, the continuing withdrawal rate was 10.0 %.

Your analysis focuses on a continuing withdrawal rate that keeps up with inflation.

You should be able to beat a 4.5 % (plus inflation) continuing withdrawal rate even today.

This reaches a 6.0 % continuing withdrawal rate if you are able to equal 1.4 % TIPS in your cash management account.

Still, this is a continuing withdrawal rate, not one with a limited time frame.

The likely outcome is a continuing withdrawal rate of 6 % of the original balance (plus adjustments to match inflation).

Here are three ways to reach a 6 % continuing withdrawal rate.

Referring to Building On Success, the new Dividend Blend would have a continuing withdrawal rate of 11.18 %.

This brings the nest egg up to $ 800000, assuming a 5 % continuing withdrawal rate that increases to match inflation.

Even if both Investments A and B do no better than meet the lower end of their growth ranges, the continuing withdrawal rate exceeds 4.1 %.

Used on its own, the continuing withdrawal rate rises to 5.5 % (plus inflation).

A 1 % increase of inflation from 3 % to 4 % reduces the continuing withdrawal rate from 5.590 % plus inflation to 4.910 % plus inflation, a reduction of 0.680 %.

Last year, I had combined intermediate term timing with a dividend strategy to lift the continuing withdrawal rate to 5.4 % (plus inflation) under realistic assumptions or 4.8 % (plus inflation) using highly conservative assumptions.

Using the original growth rates, the continuing withdrawal rate falls from 5.590 % plus inflation to 4.110 % plus inflation.

Combined with intermediate timing (or delayed purchases), it lifts the continuing withdrawal rate to 6.1 % (plus inflation).

All of these combinations have a continuing withdrawal rate of 5 %.

Focusing on dividends, timing the market on an INTERMEDIATE TERM basis (not in terms of only two or three years), and shunning stock sales lifts the continuing withdrawal rate above 6 % (plus inflation).

Referring to Building On Success, the Dividend Blend would have a continuing withdrawal rate of 11.18 %.

Since this was 20 % of the original allocation, it contributes 0.9 % (= 4.45 % * 0.2) to the continuing withdrawal rate.

Then, in Building On Success, I showed a straightforward way to reach a continuing withdrawal rate of 6.1 % of the original balance (plus inflation).

Adding in the rest of the portfolio, the new continuing withdrawal rate is 5.3 % (= 5.5 % * 0.8 +0.9 %) of the original balance (plus inflation).

If successful, reducing withdrawals to 5.0 % of the original balance (plus inflation) results in a continuing withdrawal rate of 6.4 % (plus inflation) and growing after year 10.

After playing with the numbers, I settled on this allocation: I allocated 80 % of the portfolio to the Dividend Blend portfolio, which has a continuing withdrawal rate of 5.5 % (plus inflation) at its minimum.

This is a 6 % (plus inflation) continuing withdrawal rate.

If the initial dividend yield is 4 % and the nominal dividend growth rate is 5 % per year AND if the Stock A allocation is 80 % and the TIPS allocation is 20 %, the Continuing Withdrawal Rate is 4.95 %.

For a 6 % Continuing Withdrawal Rate (2 % TIPS) at Year 30: 20 %, P / E10 = 3.2.

The Year 30 Continuing Withdrawal Rate is a little bit higher than 4 % with a liquidation strategy.

For an 8 % Continuing Withdrawal Rate (2 % TIPS) at Year 30: 20 %, P / E10 = 2.2.

Here are those results: For a 4 % Continuing Withdrawal Rate (2 % TIPS) at Year 30: 20 %, P / E10 = 5.7.

Combine a high yielding portfolio with limited income growth with a fast growing moderate yield portfolio and you can easily push the continuing withdrawal rate above 5 % (plus inflation).

We have several dividend and income strategies that lift the continuing withdrawal rate above 5 % (plus inflation).

Using the minimal income stream objectives of the Morningstar Dividend Investor newsletter, the continuing withdrawal rate exceeded 5.4 % (plus inflation).

I reported the continuing withdrawal rate for dividend strategies in «What Do I Really Think About Dividends?»

Combined with a delayed purchase, it lifts the continuing withdrawal rate to 6.1 % of the original balance (plus inflation).

A 5 % continuing withdrawal rate (plus inflation) requires little effort.

A 4.5 % continuing withdrawal rate that keeps up with inflation is easily within one's grasp.

Focusing on dividend income produces a continuing withdrawal rate that keeps up with inflation, although erratically, with a gentle failure mechanism.

P / E10 has to fall to half of today's level (P / E10 = 28 today) to come close to a continuing withdrawal rate of 5 % (plus inflation).

What is the worst case continuing withdrawal rate?

Do not be overly concerned that the continuing withdrawal rate exceeds the long term return of the stock market.