95% rule

kat · 05-27-2006, 11:32 AM

Dory, maybe I'm just really tired (I am!) and don't get this, or maybe, as it seems to me, you're saying two different things about success under this rule.

On the "How much will you spend" page the description reads, "Note that 'success' using the 95% rule means your portfolio retains the same value at the end of the term as you started with, rather than merely remaining 'in the black'"

On the FIRECalc results page, it says, "In the 95% Rule from Work Less, Live More, failure means the portfolio was as big (after adjustment for inflation) at the end of the 50 years as it was when you started.

Should failure be replaced with success?

kate (in need of a nap)

dory36 · 05-27-2006, 12:51 PM

Oops!

Thanks!

05-27-2006, 11:32 AM	#1
kat Recycles dryer sheets Join Date: Apr 2005 Posts: 459	95% rule Dory, maybe I'm just really tired (I am!) and don't get this, or maybe, as it seems to me, you're saying two different things about success under this rule. On the "How much will you spend" page the description reads, "Note that 'success' using the 95% rule means your portfolio retains the same value at the end of the term as you started with, rather than merely remaining 'in the black'" On the FIRECalc results page, it says, "In the 95% Rule from Work Less, Live More, failure means the portfolio was as big (after adjustment for inflation) at the end of the 50 years as it was when you started. Should failure be replaced with success? kate (in need of a nap)

05-27-2006, 12:51 PM	#2
dory36 Early-Retirement.org Founder Developer of FIRECalc Join Date: Jun 2002 Posts: 1,823	Re: 95% rule Oops! Thanks! __________________ Often uninformed, seldom undecided. Twenty years from now you will be more disappointed by the things you didn't do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover. Mark Twain

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