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Old 11-09-2008, 05:58 PM   #21
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I like your method, UncleMick! Especially the "pssst... Wellesley" SEC yield part.

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Old 11-10-2008, 12:18 PM   #22
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Originally Posted by Rich_in_Tampa View Post
I don't quite see it that way. The ER simply gets reflectedd in the value of the funds, upon which the withdrawal amount is calculated. A high ER fund will have a lower end-of-year value than an otherwise identical low ER fund.

But, hey, do whatever works for you.
I'm simply re-stating what Bob Clyatt says in his book. He tested the 4%/95% scheme using index values - not real funds. So, he says you need to include your fund expenses in the amount you withdraw.

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Old 11-10-2008, 12:29 PM   #23
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Originally Posted by walkinwood View Post
I'm simply re-stating what Bob Clyatt says in his book. He tested the 4%/95% scheme using index values - not real funds. So, he says you need to include your fund expenses in the amount you withdraw.
Gotcha. Semantics - my planning routine looks at returns after expenses for mutual funds including index funds. So if I think the total stock index fund will earn 7% annually, that would be after expenses, lagging a bit off the actual index holdings themselves.

I could see where back-testing would use actual index returns since expenses vary so much among funds.

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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.
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