interesting article on SWR

[simple girl]

"You might be able to pull more money from savings than you think."

http://online.wsj.com/public/articl...w3_II_F0U80zDzLGZo0V_c_20061218.html?mod=mktw

 

[OkieTexan]

Good article. Thanks........

It is fun to tinker with FIRECALC by changing the assumptions and variables a bit.

 

[youbet]

A nice summary of the variables we're all free to tinker with.......in Firecalc and in the real world.

The analogy with the layer cake, however, was lame.

 

[tryan]

Next, take the success-rate layer. If you're willing to accept, say, a 94% chance that your portfolio will last 30 years -- and a 6% chance that you'll go broke -- you can boost your withdrawal rate to 5%.

Heck, I'll take an 20% chance I'll end up either buried or broke. Seems to me any "planning" beyond 80% success is analysis paralysis.

 

[youbet]

Heck, I'll take an 20% chance I'll end up either buried or broke. Seems to me any "planning" beyond 80% success is analysis paralysis.

Why not 50/50? Even less analysis paralysis!

 

[Cut-Throat]

Why not 50/50? Even less analysis paralysis!

 

[Cut-Throat]

One of the interesting things that I have discovered using FireCalc is the close relationship to 'Average Financial Planners', if you indeed use averages.

Before I stared using FireCalc, I used the Financial Retirement Planner in Quicken. You decide your portfoilo return and inflation etc. - Not based on any Historical numbers etc.

I settled on 4% inflation, 6% returns - Living to age 100 - My numbers in Quicken match Firecalc within a couple of thousand dollars per year on a $80K spending rate.