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Firecalc lessons on drip feeding lump sums ?
Old 06-13-2009, 11:07 AM   #1
Confused about dryer sheets
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Firecalc lessons on drip feeding lump sums ?

I've just entered semi-retirement at 46 - I've got around 75k in equities, ~450k in cash, and a set of other invested pension assets that kick in at 60-65. Whether I'm fully fired somewhat depends on the answer to the questions below !

Firecalc, which I just donated to, has been fantastically useful and informative to me so far. But I'm wondering if there are any general lessons or rules of thumb that others have discovered which inform whether to take a cash lump-sum and invest it in one go (assuming a particular portofolio ratio such as 60:40), versus drip-feed in over e.g. 2 to 5 yrs (assuming the same portfolio ratio) ? It gets quite complicated to simulate some of this with Firecalc, and I'm a bit concerned whether I've got all my start/finish dates and sums sorted right.

My initial results seem to indicate that while it reduces the spread of min/max values, it doesn't significantly change the level of income one could assume taking with say a 95% success rate. Does this stack up with others results ?

(I was going to post this in the general investment forums, but I'm most interested in specifically what lessons Firecalc holds, and in cross-checking my results with others - as opposed more general philosophical discussions as to what might happen with this approach in the future. I've also searched the forums on "drip feed" but not found any relevant similar discussions).

Thanks for any help, pointers or information.



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Old 06-13-2009, 11:17 AM   #2
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Is "drip feed" the same as "dollar cost averaging"--perhaps a search for that or "DCA" might give you some useful information?

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Old 06-13-2009, 03:33 PM   #3
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As a medical professional, your subject heading immediately suggested tube feedings to me, and I definitely wouldn't try to drip feed lumps through a tube!

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