Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Old 12-29-2015, 08:59 PM   #21
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 17,830
Originally Posted by photoguy View Post
If I understand the article correctly, if the withdrawal (4%) is not sufficient to reach the target allocation, the portfolio will be left out-of-whack.

I guess his rebalancing approach will fail to maintain the target allocation whenever stocks have a greater than 8% gain/loss (he uses 50-50 portfolio).
OK - good point. That is not complete rebalancing. Then the model is just confusing.

Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 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 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!

Old 12-30-2015, 08:34 AM   #22
Thinks s/he gets paid by the post
photoguy's Avatar
Join Date: Jun 2010
Posts: 2,301
Yeah I hate it when people don't use an appropriate default when testing their new fangled algorithm. Sometimes I think it's intentional (instead of cluelessness) but either way doesn't instill confidence in his work.

Sent from my Nexus 5 using Early Retirement Forum mobile app

photoguy is offline   Reply With Quote
Old 01-02-2016, 06:48 AM   #23
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
donheff's Avatar
Join Date: Feb 2006
Location: Washington, DC
Posts: 8,808
I read an article years ago that suggested a starting WR % calculated as 1/Schiller's PE/10 (CAPE) at the start of ER. That would amount to 3.8% today. And someone else suggested reducing that a bit ~.83/PE/10 (3.2% today). Does anyone know where I could find a reference that discusses using the PE/10 to set a starting WR?

Every man is, or hopes to be, an Idler. -- Samuel Johnson
donheff is offline   Reply With Quote

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
Websites for Evaluating Customer Satisfaction with Specific Health Insurance Cos John Galt III Health and Early Retirement 3 11-20-2014 08:01 AM
Preparing for FIRE Soon - help with evaluating options Keyser30 FIRE and Money 8 05-24-2013 10:08 PM
PSA: FIRECALC Success Rates for various ages & withdrawal rates Midpack FIRE and Money 37 05-16-2012 08:37 AM
Re-evaluating my retirement / pension options utrecht FIRE and Money 3 11-11-2010 07:20 AM
Evaluating preferred stocks in beaten-down sub-prime lenders MooreBonds FIRE and Money 1 02-26-2007 02:34 PM


All times are GMT -6. The time now is 04:21 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2018, vBulletin Solutions, Inc.