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Originally Posted by mathjak107
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Sorry, but it is very poorly written. Regardless of his withdrawal strategy, did this guy ever rebalance his portfolio to a desired asset allocation? He never tells us. The closest we get is this:
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The strategies themselves are each quite simple, but vary significantly in their philosophy and results. Note these are pure withdrawal strategies. They never buy or sell, or change the asset allocation, by any amount other than to generate the required withdrawal in a given year:
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So apparently he's not actually doing any rebalancing as we know it beyond taking the annual withdrawal from the most out-of-balance asset.
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Originally Posted by hnzw_rui
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+1. The "equal withdrawals" method simply results in higher equity allocations over time, which produce higher average returns. But if a retiree wanted that higher return (and volatility) he could have simply started with the higher equity allocation.
The finding that the CAPE (aka PE10)-based withdrawal strategy had the highest value and survival (even better than his "equal withdrawals" strategy) at least hints at the value of using PE10 (whether for withdrawals or for adjusting AAs).