First off, many many thanks for an amazing tool. This is proving crucial to my own decision-making, and I cannot thank enough whoever worked so hard in creating such a great tool.
Now I have a suggestion. On this thread, we're discussing what we dubbed the Guyton/Klinger withdrawal model, where the withdrawal rate becomes more adaptive (essentially going up & down depending on the market girations).
A formal and very clear definition of the model can be found in this paper.
This G-K model seems quite sensible, fairly easy to implement, and many of us would probably apply (possibly in a coarser and more improvised manner) a similar adaptive logic anyway at some point during our retirement.
It does seem different from the 95% model, if only because of the all-important 'prosperity' rule.
Being able to model such new spending model based on all the typical Firecalc input parameters would be fantastic. For sure, there would be key questions like:
1. can I *really* go up to 5% withdrawal rate to start with and make it?
2. in a set of scenarios, how often would we reach a predefined floor in spending (WR getting too low for your strictly minimal set of expenses)
3. if I set a floor (lower cap) and/or a ceiling (upper cap), how does this impact the outcome?
I am sure this is non-negligible work (if only to add historical inflation data to the model), but this still seems like an incremental change to Firecalc, and something that would be extremely useful. Yes, I know, easy to say...
Thoughts?
Now I have a suggestion. On this thread, we're discussing what we dubbed the Guyton/Klinger withdrawal model, where the withdrawal rate becomes more adaptive (essentially going up & down depending on the market girations).
A formal and very clear definition of the model can be found in this paper.
This G-K model seems quite sensible, fairly easy to implement, and many of us would probably apply (possibly in a coarser and more improvised manner) a similar adaptive logic anyway at some point during our retirement.
It does seem different from the 95% model, if only because of the all-important 'prosperity' rule.
Being able to model such new spending model based on all the typical Firecalc input parameters would be fantastic. For sure, there would be key questions like:
1. can I *really* go up to 5% withdrawal rate to start with and make it?
2. in a set of scenarios, how often would we reach a predefined floor in spending (WR getting too low for your strictly minimal set of expenses)
3. if I set a floor (lower cap) and/or a ceiling (upper cap), how does this impact the outcome?
I am sure this is non-negligible work (if only to add historical inflation data to the model), but this still seems like an incremental change to Firecalc, and something that would be extremely useful. Yes, I know, easy to say...
Thoughts?