verygoodthings
Dryer sheet aficionado
- Joined
- Feb 4, 2011
- Messages
- 34
I have a specific question about everyone's use of Firecalc.
Firecalc uses a 75% equity / 25% bond mixture. Did the creator find that to be the best structure for a portfolio with 4% (plus inflation indexed, yada yada) withdrawals. Defining best as "lowest failure percentage".
I know that Jim Otar's book gets into more detail and breaks down all the scenarios, but everyone on here seems thrilled with FireCalc, so I thought I'd ask this. If 75/25bond is the "best" system for a 4% withdrawal, how would that ratio change if someone was aiming to make 2% withdrawals?
My question is very selfish. I'm in a position where I have a very long outlook (60 years), and may need to make 2% withdrawals over the next couple years (hopefully reduce?). I'm using all DFA products.
Thanks in advance to all contributions,
Firecalc uses a 75% equity / 25% bond mixture. Did the creator find that to be the best structure for a portfolio with 4% (plus inflation indexed, yada yada) withdrawals. Defining best as "lowest failure percentage".
I know that Jim Otar's book gets into more detail and breaks down all the scenarios, but everyone on here seems thrilled with FireCalc, so I thought I'd ask this. If 75/25bond is the "best" system for a 4% withdrawal, how would that ratio change if someone was aiming to make 2% withdrawals?
My question is very selfish. I'm in a position where I have a very long outlook (60 years), and may need to make 2% withdrawals over the next couple years (hopefully reduce?). I'm using all DFA products.
Thanks in advance to all contributions,