We need to open every discussion board and blog on the internet to honest
posting on safe withdrawal rates and many other critically important investment - related topics.
David Blanchett, the Head of Retirement Research at Morningstar, recently published this study on the impact of guaranteed income
on safe withdrawal rates from portfolios.
The final amount is the figure you need to work towards before you can quit your job and still pay your bills, be aware though, it's all based
on a safe withdrawal rate of 4 %
We also discuss the value of an income annuity, and highlight a study by Morningstar on the impact of guaranteed
income on safe withdrawal rates from portfolios.
A great series of posts by ERN who has a PhD in economics has 23 posts on current
thinking on Safe Withdrawal Rates and is a must read for anyone considering an «early» retirement.
, Andrew Clare, James Seaton, Peter Smith and Steve Thomas compare effects of asset class diversification and trend
following on safe withdrawal rates from UK retirement portfolios.
I want to distinguish between 1) the equity return outlook itself, which is not that great given the high CAPE ratio, hence all of our
writings on safe withdrawal rates, etc. 2) equity vs. bond return outlook: Compared to bond returns, equities still look decent.
I'm going to assume it's not passive since 800k couldn't reasonably generate that much based
on a safe withdrawal rate.
How much of an impact will this have
on Safe Withdrawal Rates?
And if you like that one blog that does a lot of research
on Safe Withdrawal Rates and publishes case studies for fellow FIRE enthusiasts and other fun personal finance content (wink, wink) please consider nominating it in one (or all?)
This lets us know the effect that reducing the interest rate has
on Safe Withdrawal Rates.
But with my early retirement around the corner and my research
on Safe Withdrawal Rates and the menace of «Sequence Risk,» I have that nagging question on my mind: Are the instances where an investor would be better off throwing in the towel and selling equities to hedge against Sequence Risk?
The effort to open the internet up to honest posting
on safe withdrawal rates and scores of other critically important topics is an effort that will never end until we have brought the economic crisis to an end and we are all enjoying the greatest economic boom in U.S. history.