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Old 12-29-2015, 09:59 PM   #21
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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.
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Old 12-30-2015, 09:34 AM   #22
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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.

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Old 01-02-2016, 07:48 AM   #23
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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?
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