GravitySucks
Thinks s/he gets paid by the post
While looking for the reason Bengen found a SafeMax of 4.5% while Trinity found a bit lower SWR I found a couple of things. First Trinty used a default fund fee where Bengen considers that as part of the 4.5%. The more interesting item I found was Bengen uses Intermediate Treasuries for the fixed income portion of the portfolio where Trinity uses a mix of bonds.
I played with FireCalc a bit and found substituting Intermediate Treasuries for the default FI did slightly raise the success rate. No free lunch, it also lowered the average ending balance.
This has me thinking that it would be a good idea to move my FI from the managed bond fund I now use to FUAMX and when the laddered bonds come due replacing them with 5 year Treasuries. Its better to be at quality when the inevitable Flight to Quality events happen. Anyone exclusively using Govvies for Fixed Income? Any opinions on FUAMX?
I played with FireCalc a bit and found substituting Intermediate Treasuries for the default FI did slightly raise the success rate. No free lunch, it also lowered the average ending balance.
This has me thinking that it would be a good idea to move my FI from the managed bond fund I now use to FUAMX and when the laddered bonds come due replacing them with 5 year Treasuries. Its better to be at quality when the inevitable Flight to Quality events happen. Anyone exclusively using Govvies for Fixed Income? Any opinions on FUAMX?
