Another Firecalc question - Is this accurate?
I just added this same question to a running thread about Firecalc and taxes, but since the original question was already answered (thanks) I'm starting a new thread since I'm worried no one will see the question:
I put a hypothetical portfolio into Firecalc starting with $1,000,000 and $30,000 in spending. (A 3% withdrawal rate.) The portfolio was 50% in stocks and 50% in 5 year bonds. The portfolio succeeded in virtually every case except starting in 1929. What I don't understand is that, starting in 1929, the LOWEST value the portfolio hit in the first 10 years was $672,000. How is that possible, especially given 3% annual withdrawals? Didn't the stock market fall about 90% between 1929 and 1937? I don't imagine 5 year notes were yielding enough to dampen the difference this much. What am I missing?