Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Bonds first withdrawal strategy and Firecalc
Old 11-09-2013, 01:59 PM   #1
Confused about dryer sheets
 
Join Date: Dec 2009
Location: lake forest
Posts: 7
Bonds first withdrawal strategy and Firecalc

Firecalc assumes withdrawals are made each year by the "rebalancing" method, meaning either stocks or bonds are sold each year to maintain the same asset allocation over time. Spitzer and Singh proved that a "bonds first" withdrawal strategy can produce better results than rebalancing (although a huge equity balance will result over time). The "bonds first" strategy is consistent with "buckets" strategy. Has anyone figured out how to test the "bonds first" strategy in Firecalc? The tool doesn't seem to let us modify the withdrawal strategy. Thanks!
Attached Files
File Type: pdf Retirement - SpitzerSingh Bonds First.pdf (820.8 KB, 4 views)
__________________

__________________
letsquit is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 11-09-2013, 02:24 PM   #2
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,107
Quote:
Originally Posted by letsquit View Post
The tool doesn't seem to let us modify the withdrawal strategy.
Correct. Not one of the variables included in the tool.
__________________

__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 11-09-2013, 03:07 PM   #3
Thinks s/he gets paid by the post
 
Join Date: Mar 2009
Posts: 1,433
Using a bonds first strategy would be similar to a rising equity glidepath, previously discussed here and at Bogleheads. By the nature of the investments and prior historical results the success rate would be favorable. I prefer to take a conserative approach to the calculator and use it as a guide rather than a predetermined result.
__________________
Retired in 2016. Living off dividends / interest and a mini pension. Freedom.
foxfirev5 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 08:55 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.