Ok, I have a spreadsheet with a macro thats runs thru the years (like FIRECALC) and outputs lots more data. It also allows options like fixed %, variable% and % of salary draws (and combinations). My issue with the 4% fixed rule is is is too fixed (pun intended). I'm not trying to cut down the years of reasearch using that, but always thought it lacked realistic feedback.
My yardstick is a retirement that starts just before Depression and one that starts after '74. Start with the same amount and one gets crushed and one goes to infinity and beyond. This of course is why you aim for a 95% confidence, but wanted to play around with other withdrawl schemes. BTW my examples below intentionally over draw to provide the comparision.
My other issue is at 4%, my ending NW many times is very large and I am looking for a way spend more now and not have a bank full of money when I die.
If anybody wants to test it out and provide feedback, just let me know.
Here is some snippets of the above scenerio:
Start yr A2R lDFixed lDPerVar DPerSal lBPer NW @ R (av) NW @ T (av) Draw @ R Fail Warnings
1923 47 6.60% 0.00% 0.00% 20.00% 2,154,119 (50,135,433) 142,172 1 31
1975 47 6.60% 0.00% 0.00% 20.00% 2,131,675 46,828,439 140,691 - -
with 3.3% as variable
1923 47 3.30% 3.30% 0.00% 20.00% 2,154,119 (4,761,080) 142,172 1 31
1975 47 3.30% 3.30% 0.00% 20.00% 2,131,675 17,228,711 140,691 - -