E
ERReady
Guest
Maybe someone can help with a problem I'm having with FIRECalc.
--Start with all the defaults, except for one thing - select 5 year treasuries.
--Look at the result: "A withdrawal of about $29,770 is the highest withdrawal that would have survived 95% of the periods tested"
--Now submit the exact same input except for one change - change the TIPS return to 1% instead of the 2.5% default. Don't check the TIPS Button, choose 5 year treasuries again; just change the return in the TIPS box. In other words, leave everything exactly the same as the first trial, except for the change in the TIPS return box.
--Now check the results again: "A withdrawal of about $29,185 is the highest withdrawal that would have survived 95% of the periods tested"
If I'm selecting the exact same mix of five year treasuries & stocks (25%/75%) both times, why would changing the return in the TIPS field change the historical safe withdrawal amount? Am I missing something? What is the correct withdrawal rate that would have survived 95% of the periods tested when selecting 5 year treasuries? Is it possible to know using FIRECalc?
--Start with all the defaults, except for one thing - select 5 year treasuries.
--Look at the result: "A withdrawal of about $29,770 is the highest withdrawal that would have survived 95% of the periods tested"
--Now submit the exact same input except for one change - change the TIPS return to 1% instead of the 2.5% default. Don't check the TIPS Button, choose 5 year treasuries again; just change the return in the TIPS box. In other words, leave everything exactly the same as the first trial, except for the change in the TIPS return box.
--Now check the results again: "A withdrawal of about $29,185 is the highest withdrawal that would have survived 95% of the periods tested"
If I'm selecting the exact same mix of five year treasuries & stocks (25%/75%) both times, why would changing the return in the TIPS field change the historical safe withdrawal amount? Am I missing something? What is the correct withdrawal rate that would have survived 95% of the periods tested when selecting 5 year treasuries? Is it possible to know using FIRECalc?