Dave Ramsey is often angrily and aggressively and completely wrong.
He shows zero understanding of sequence of return risk.
I don’t think anyone should look to him for advice on anything, since he seems incapable of actually thinking about anything in a non-rote, dogmatic manner.
Yuck.
YVRRocketSurgery,
That's a long video, but also an impressive panel of experts and good topics. On the queue to watch. Thanks for sharing!
That makes sense. Here's a link to Morningstar. You can get 4.6% with TIPS alone. The link explains a bit about their recommendations for 2023. Of course some people aren't going to be influenced by changes in expected returns.
https://www.morningstar.com/retirement/good-news-safe-withdrawal-rates
Reminds me of Jimmy Stewart "George Baily" in "Its a wonderful Life" when he got into it with old man Potter when they argued about the "Building and Loan" anfd George giving mortgages to people that Potter's bank declined. Potter suggested that people save more and buy a house later.....George Baily responded "Wait? Wait for what? Do you know how long a working person has to wait to save $5,000 (the cost of a new home at the time.) George Baily said "Is it wrong for a man to want to live in a house with a decent roof and a bath before his children move away?
This said I had a 15 year morgage when I bought my house at age 28 in 1993. 7% fixed. I kept it the whole term, best thing I ever did. If I hadn't bought the house it would have increased in value faster than I could have saved money and my rent would have went up too, plus I liked living in my house.
Where did Dave Ramsey get his education and credentials to deserve to be listened to ? I don't dislike him, I just don't know what makes him an expert.
If you aren’t a worst case outcome then it can be 6-1/2%
But no one knows if they are day 1
The updated trinity study which uses different bonds then bengan failed at 4%
the problem with tips is taxes and the fact it tracks no one’s personal cost of living .there can be quite a bit of over drawing going on
plus remember , 90% of all 123 rolling 30 year periods have ended with more than you started with 30 years later with a 50/50 to 60/40 . 67% of the time you ended with 2x what you started with.
tips can leave you on empty 30 years later , so big difference
good interview with christine benz and kitces , where kitces talks about using tips alone, which he isn’t a fan of doing
https://www.morningstar.com/retirem...-affect-asset-allocation-retirees-preretirees