bamsphd
Recycles dryer sheets
- Joined
- Nov 25, 2005
- Messages
- 337
Most of the now classic "4% rule" style withdrawal studies I know about used year end values for their calculations. Year end is a rather arbitrary date, obviously chosen to make the calculations easier. Does anyone know of any studies that simulated the unlucky fool who happened to pick the year's high value as their initial withdrawal value?
I haven't felt this close to retirement since an October market high a few years ago. However, using today's close instead of the past year end close as my starting value probably means I need to adjust down my anticipated withdrawal rate. I'm just looking for any studies which can give me a ballpark estimate of how much of an adjustment I should make when [-]trying to convince myself that I like cat food[/-] doing my due diligence before going through one-way doors at work.
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Disclaimer: The "4% rule" is simply a nickname for various systems of estimating the odds of various investment portfolios surviving for various periods using various withdrawal algorithms adjusted by various allowances for inflation based on various ways of specifying an initial portfolio value. All of the system are known to be at best rough approximations of the future, your mileage may vary, dried beans and rice is usually cheaper than quality cat food.
I haven't felt this close to retirement since an October market high a few years ago. However, using today's close instead of the past year end close as my starting value probably means I need to adjust down my anticipated withdrawal rate. I'm just looking for any studies which can give me a ballpark estimate of how much of an adjustment I should make when [-]trying to convince myself that I like cat food[/-] doing my due diligence before going through one-way doors at work.
----
Disclaimer: The "4% rule" is simply a nickname for various systems of estimating the odds of various investment portfolios surviving for various periods using various withdrawal algorithms adjusted by various allowances for inflation based on various ways of specifying an initial portfolio value. All of the system are known to be at best rough approximations of the future, your mileage may vary, dried beans and rice is usually cheaper than quality cat food.