Re: T.Rowe Retirement Calculator
Yeah, the TRowe Price calculator always seems to come up with an SWR around 2.5%
I think Charlie's right -- it's uses Monte Carlo.
If you don't model in reversion to mean, (and reverse kurtosis or something like that) monte carlos can always come up with lots of strange lowball cases which increase volatility and skew results down from normal market returns.
ER for 10 years; living off 4.3% of savings (and a few book royalties ;-)