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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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