Variable Withdrawal Rate Studies

[Gotadimple]

I follow the Retirement Cafe by email. This week he continues a series on withdrawal methods by reviewing Variable Withdrawals and the studies that have been done on the strategy.

I haven't dug into the links in the article yet, but as always, he provides good research and something to think about.

The Retirement Café: Unraveling Retirement Strategies: Variable Spending from a Volatile Portfolio

- Rita

 

[Dtail]

In my first full year of retirement, I chose a fixed amount. Going forward, I do believe that if one does wish to follow some formulaic withdrawal strategy (which I do), then a variable strategy could get closer to a real life spending concept.
Choosing which one will be my next research topic. I do like Bob Clyatt's 4/95 strategy so far, although perhaps use 3/95 in the early years.

 

[FI_RElater]

variable withdrawal studies

go to the “Bogleheads” website and review the multitude of threads on either “Variable Portfolio Withdrawal” (VPW) or “Guyton-Klinger” methods, among others. It’s also in their “wiki” on the site.

There’s a host of authors that post, or use to post, there: Kitses, Pfau, Swedroe, etc (there’s a list there of suggested reading). LOTS of discussion there