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some questions from a 55 yr old.
Old 07-20-2010, 07:24 PM   #1
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some questions from a 55 yr old.

Just curious to get people's thought s on the following:

- a swr for a 55 yr old with the following AA:

50% Equity Funds (of which 12.5% in int'l)

12% TIPS Fund

20% Bond Funds (mostly intermediate)

18% cash


- also, how would one enter the above AA into the FIRECALC??


Thanks in advance .

Golfnut.
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Old 07-20-2010, 07:52 PM   #2
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When do you plan on Dying ?

For a 30 year retirement a SWR around 4% is reasonable (less investment fees).

I would first run FIRECALC with the total market option. FIRECALC doesn't model foreign equities, TIPS, or MM (cash) accounts so you'll have to choose whatever you feel is closest.

I expect that FIRECALC will give you a SWR around 4% (including investment fees). Keep in mind that FIRECALC is just a rough guide. Nobody really knows what the future holds. So detailed modeling to the nth decimal isn't reasonable. Just take the result as perhaps the kind of SWR that you could use.

Lets us know what you discover.
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Old 07-20-2010, 08:19 PM   #3
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When do you plan on Dying ?

For a 30 year retirement a SWR around 4% is reasonable (less investment fees).

I would first run FIRECALC with the total market option. FIRECALC doesn't model foreign equities, TIPS, or MM (cash) accounts so you'll have to choose whatever you feel is closest.

I expect that FIRECALC will give you a SWR around 4% (including investment fees). Keep in mind that FIRECALC is just a rough guide. Nobody really knows what the future holds. So detailed modeling to the nth decimal isn't reasonable. Just take the result as perhaps the kind of SWR that you could use.

Lets us know what you discover.
Bases on your suggestions, it appears a 3.25 swr works for a 40 yr investment period and leave about $130,000 at the end.
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Old 07-21-2010, 08:41 AM   #4
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That dovetails with a number of acedemic studies. Here are some of Bernstein's charts for some mixed stock-bond portfolio's:
Attached Images
File Type: gif SWR2.gif (13.9 KB, 8 views)
File Type: jpg SWR.jpg (31.7 KB, 185 views)
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Old 07-21-2010, 01:26 PM   #5
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Bases on your suggestions, it appears a 3.25 swr works for a 40 yr investment period and leave about $130,000 at the end.
What is your plan if you live to 100?
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Old 07-21-2010, 01:36 PM   #6
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I better be gone by 95 or I'll be SOL !! In other words, no plans on living beyond 95 nor do I want to (I think).
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Old 07-21-2010, 01:40 PM   #7
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no plans on living beyond 95 nor do I want to
At 94 you may change your mind.
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Old 07-21-2010, 01:42 PM   #8
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while you're in this phase - modeling your SWR - you may want to try out the free ESPlanner (esplanner.com). Read some of the papers there too.

There is a very dense book & calculator by Otar at otar retirement calculator
(I have't tried the calculator, but the book is worth the slog)

All the best!
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Old 07-21-2010, 02:31 PM   #9
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At 94 you may change your mind.
+1
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Old 07-21-2010, 06:46 PM   #10
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+1
If my brain is still functioning.
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Old 07-21-2010, 06:55 PM   #11
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based on your name when your swing goes it is probably a good time to with it...
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Old 07-21-2010, 07:26 PM   #12
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I'm hoping to be a better golfer in early retirement than I am now . I'll be practicing and playing more!
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Old 07-21-2010, 07:44 PM   #13
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I'm hoping to be a better golfer in early retirement than I am now . I'll be practicing and playing more!
That's what I was hoping. Actually, I am a little better. But I don't practice that much, just play.
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Old 07-22-2010, 10:37 AM   #14
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At 94 you may change your mind.
I do taxes for TaxAide. This year I had a couple come in -- he is 94, she 93. Up until this year he has been doing his own taxes. This year he admitted it had reached a point where it was a bit too complicated for him. He and his wife looked pretty spry.
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