Originally Posted by photoguy
How do people use these predictions?
I can compute my weighted expected return and see that it is greater than my planned withdrawal rate, but I'm not really sure what else I should do with these numbers.
I did the same looked at the averages and applied my current AA for each asset class. This gave me an expected average return, and because I am sure that numbers are 100% accurate I subtracted 2.5% for inflation. Divide the number 12 and plan and spend that much each and every month.
Ok actually I did nothing of the sort, but seeing the higher equity returns makes me feel better.