Another article on SWR: Morningstar

[ERD50]

Compare with Henry Heebler's simplified auto-pilot method.

Interesting. It is basing WR on an average of the 4% 'rule' and the govt published RMDs.

If I'm following this right, the initial WR for a 65YO is the average of 1/31 and 4%. That is 3.23% and 4.00%, so average is 3.615%. And it dips considerably in his 1965 scenario, looks like ~ 2.5% at about 15 years in?

Compare to a FIRECalc run (not directly comparable - his conditions are slightly different, I might try to model both in FIRECalc later) which shows that a constant 3.58% survives.

But it's food for thought. I'm thinking it might look good for me by combining the RMD calc with a lower baseline WR, like 3.5%? And I've definitely thought about using RMD as part of the equation for my later years.

-ERD50

 

[ERD50]

Can anyone find the RMD table he uses in the auto-pilot article?

Put retirement savings withdrawals on autopilot - MarketWatch

The ones I find start at 70 1/2, and the numbers are different. His table is an image, I can't easily copy/paste the numbers into a spreadsheet, and I could not find it in Pub 590.

-ERD50

 

[Gotadimple]

Go to publication 590, appendix C.

-- Rita

 

[ERD50]

Go to publication 590, appendix C.

-- Rita

Thanks, I did that, but I didn't see any numbers that matched his table. i.e Age 60, RMD of Account / 35.2?

-ERD50

 

[ronin]

I would have guessed that he was using Table 1 for single life expectancies, but as you say it doesn't match up at all. Maybe his table is old and life expectancies have been revised.

 

[Gatordoc50]

Most of these pundits supporting SWRs base their assumptions on past history. So it's funny to see the rate reduced by 25 percent after a few short years. History sure can change on a dime ! lol. Trying to come up with a satisfactory formula for a problem with so many variables is futile, IMO. For those RE looking at 40 year plus retirements I would recommend splitting the time frame up before 67 and after. I would have a target amount for age 67 and make sure I hit or exceed it.