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Article: SWR strategy comparison
Old 05-20-2015, 08:59 AM   #1
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Article: SWR strategy comparison

An interesting article that compares strategy and realities of SWR

https://www.fidelity.com/insights/re...etirement-rule
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Old 05-20-2015, 04:01 PM   #2
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2.85% is the new 4% for a 30 year retirement. My WR will be 3% for a 40 year retirement. I sure hope I don't have to start wishing for an asteroid strke in 27 or so years !
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Old 05-20-2015, 04:35 PM   #3
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The highlight of the article is Mr Bengen being quoted:


"Go to a qualified adviser and sit down and pay for that,"
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Old 05-20-2015, 04:39 PM   #4
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Quote:
Originally Posted by youbet View Post
The highlight of the article is Mr Bengen being quoted:

"Go to a qualified adviser and sit down and pay for that,"
The article also says this:

Quote:
So perhaps it's not all that surprising that Mr. Bengen said he had hired not one, but two financial advisers — both good friends — to handle his retirement money. Though his advisers rely on financial software, he said they were proponents of the 4 percent rule.
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Old 05-21-2015, 09:48 AM   #5
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Originally Posted by youbet View Post
The highlight of the article is Mr Bengen being quoted:


"Go to a qualified adviser and sit down and pay for that,"
I think that's good advice for the vast majority of people. I've met so many intelligent people who just cannot (or will not) educate themselves about finance. They may be well behaved financially with good savings etc., but will not learn about investing or SWR or tax management.

For me - I'd rather rely on history to create an SWR and use a flexible approach to stay solvent than rely on future predictions by Pfau and others.
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Old 05-21-2015, 09:52 AM   #6
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Quote:
Originally Posted by youbet View Post
The highlight of the article is Mr Bengen being quoted:


"Go to a qualified adviser and sit down and pay for that,"
I think that's good advice for the vast majority of people. I've met so many intelligent people who just cannot (or will not) educate themselves about finance. They may be well behaved financially with good savings etc., but will not learn about investing or SWR or tax management.
The problem is, those same people have no idea on how to find a ' qualified adviser'. There are a lot more salespeople out there than 'qualified advisers'.

And the old 'ask friends and family' for refs is useless - they probably don't know a ' qualified adviser' from a slick salesperson either.

-ERD50
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Old 05-21-2015, 09:55 AM   #7
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seems like a better way to draw down would be to take a (x minus age) approach as a divisor - that way the longer you live the more you draw down - of course once you hit a certain threshold - say 80 for example - you would change x


fixed SWRs are a weird paradigm to me
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Old 05-21-2015, 10:14 AM   #8
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See also this thread Dr. Wade Pfau's Recent Paper on Comparing Withdrawal Strategies Available On-Line

It links to Pfau's original paper with a lot more details (and more methods compared).
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Old 05-21-2015, 10:27 AM   #9
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The problem is, those same people have no idea on how to find a ' qualified adviser'. There are a lot more salespeople out there than 'qualified advisers'.
Very true. As we age our ability to make sensible decisions may be degraded.

Another option would be to buy Welesly (or a similar fund) and just collect the dividends. The fund will automatically make the balancing and investment decisions. You could do worse.
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