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Re: More is better .... ???
Old 02-18-2004, 11:55 AM   #1
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Re: More is better .... ???

That seems pretty intuitive.

In an up year, more frequent withdrawals would remove the upside potential benefit, while in the down year the same would remove downside potential loss.

The potential benefit would be the percentage up/down as a function of when the money was withdrawn vs another withdrawal strategy.

In other words, calculable only as a historic function and of limited use for any forward calculations. There are some mass stats that work most of the time, for example certain times of the year being better/worse for the market, the third and fourth years of a presidents term having higher returns than the first two years, etc. You could conceivably time your withdrawal times to coincide with "generally beneficial times". Unfortunately there are many instances where the reality doesnt match with the "usual behavior".
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Re: More is better .... ???
Old 02-18-2004, 04:47 PM   #2
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Re: More is better .... ???

After pondering this in traffic today, it occurred to me that this is simply reverse DCA. You would be taking out more shares when things are down, fewer shares when things are up.

So I guess if you believe in DCA, you wouldnt like the "more smaller withdrawals" approach.
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