Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Re: Do you agree with Bengen's "Layer Cake" withdrawal rate
Old 12-16-2006, 10:50 AM   #21
Full time employment: Posting here.
bosco's Avatar
 
Join Date: Jul 2005
Posts: 987
Re: Do you agree with Bengen's "Layer Cake" withdrawal rate

Quote:
Originally Posted by Nords
No, but have you read Hebeler's book? It makes 4% seem wildly hedonistic and he'd probably have a h0cus conniption fit with the SWRs quoted here.

It seems ironic that the former president of an aerospace corporation doesn't do online sales, let alone PayPal...
Yes, I've read it. He does seem fairly conservative with his withdrawals, but not for the same reasons as H0suc. He seems to worry a lot about reverse dollar cost averaging, and his estimates of expenses ratios and underperformance seem quite high as well. These seem like a problems that can be lessened or eliminated with intelligent fund selection and method of making withdrawals. His program (at least the demo), however, allows you to adjust expense ratios and equity percentages, but I suppose the reverse dollar cost averaging would still occur. But it would occur with any program that modeled automatic withdrawals and rebalancing, would it not?
__________________

__________________
I have an inferiority complex, but it's not a very good one.
bosco is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Do you agree with Bengen's "Layer Cake" withdrawal rate
Old 12-16-2006, 11:02 AM   #22
Moderator Emeritus
Rich_by_the_Bay's Avatar
 
Join Date: Feb 2006
Location: San Francisco
Posts: 8,827
Re: Do you agree with Bengen's "Layer Cake" withdrawal rate

Quote:
Originally Posted by Ron'Da
To answer your question in a pragmatic manner, you can say that my plan could be off by 50%, and we would still meet 100% of our goal (yes, the well is deep ).
That makes your plan sound perfect IMHO. Lots of cushion, heirs accounted for, plenty for a rainy day. Well done.

__________________

__________________
Rich
San Francisco Area
ESR'd March 2010. FIRE'd January 2011.

As if you didn't know..If the above message contains medical content, it's NOT intended as advice, and may not be accurate, applicable or sufficient. Don't rely on it for any purpose. Consult your own doctor for all medical advice.
Rich_by_the_Bay is offline   Reply With Quote
Re: Do you agree with Bengen's "Layer Cake" withdrawal rate
Old 12-16-2006, 11:49 AM   #23
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,616
Re: Do you agree with Bengen's "Layer Cake" withdrawal rate

Quote:
Originally Posted by Ron'Da
(Where does Ho*us fit into this? Other than his plan for 2% withdrawls)
***** can't do math but he doesn't hesitate to lecture those who can. He's not in the stock market but he rants wildly about overvalued equities. Of course Bud Hebeler takes a much more balanced approach but I think that he also tends to be too conservative in his withdrawal estimates. However Bud spends a lot of his time with Social Security widows and provides a valuable cautionary approach to withdrawals.

Quote:
Originally Posted by Ron'Da
As Conan says "do you want to live forever? )
So far the answer is "Yes!"

However I'm absolutely positive that I don't want to live longer than my portfolio. Planning to live to 140 may be over-nuking the analysis, but expecting a portfolio to run out before its owner hits triple digits seems to be putting a lot of faith in Social Security.

Quote:
Originally Posted by Ron'Da
PS: Cute what you do with the "H-word!"
Thanks, but the board software has a table of word substitutions that can be used to close the loopholes as fast as we can find them... unfortunately I've forgotten the ASCII code for the umlaut-accented letter "O"!
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Re: Do you agree with Bengen's "Layer Cake" withdrawal rate
Old 12-16-2006, 11:50 AM   #24
Full time employment: Posting here.
 
Join Date: Jan 2006
Posts: 684
Re: Do you agree with Bengen's "Layer Cake" withdrawal rate

Quote:
Originally Posted by Ron'Da
I'll assume you are directing the question to me, so I'll attempt to answer it (in my own words). To start with, I use several "retirement calculators" in an effort to not get the "best one", but rather to ensure that they all show a similar conclusion to the facts that I am able to provide (each of them have their own input criteria).

Hope that gives you the info you need - if not, just ask again....

- Ron
Thanks, I will look into your recommendations, and get back with you if I have more questions.
__________________

__________________
48Fire is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Safe withdrawal rate questions jhecht FIRE and Money 7 12-18-2006 02:53 PM
"Is the Safe Withdrawal Rate TOO Safe?" Nords FIRE and Money 13 10-20-2004 11:36 AM
Safe Withdrawal Rate for living like a chicken cute fuzzy bunny Other topics 4 07-10-2004 06:59 PM
'Son with a spare room' safe withdrawal rate intercst FIRE and Money 16 07-02-2004 11:41 AM
Withdrawal Rate Increases with Time? mccl FIRE and Money 26 05-22-2004 04:51 AM

 

 
All times are GMT -6. The time now is 03:30 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.