I only read the first bit and decided not to invest any more time right now to read further. This part stopped me dead in my tracks......
I noticed that two investing/retirement rules of thumb were used in his presentation:
Being a geek, specifically regarding withdrawal rates in retirement, I immediately noticed an issue with these rules of thumb – they aren’t likely to be true if people follow both at the same time!
- Use Target Date Retirement funds
- The 4% withdrawal rule.
Target Date funds are for accumulation phase and 4% SWR applies to distribution phase, so why would anyone follow both at the same time?
A bigger issue to me is that the specific AA varies significantly between different mutual fund companies for a given Target Date. I generally ratchet up the equity side a bit to satisfy my own risk tolerance