I do love spreadsheetology. Out of curiosity, what have you found as an example of a minor tweak making a big difference? I assume you are referring to what in the trade is called a sensitivity analysis.
I was surprised first at how little the stock/bond allocation mattered to SWR until I looked at low stock allocations. Then I was surprised at how quickly SWR dropped off for low stock allocation.
Hi arrete,Was there a particular point (inflection point? Can't remember terminology) where the SWR took a dive depending on the stock/bond mix? It might be interesting as you grow older to nudge your portfolio in that direction, but not past it.
arrete
Are the geese returning northward already?
One point cannot be made often enough -- when you retire, are you going to be withdrawing a fixed inflation adjusted amount on a regular basis, or are you going to be withdrawing a fixed percentage of your portfolio? This is not a semantic fine point. If you need a fixed amount, plan on withdrawing no more than about 4% of your starting amount in inflation adjusted terms. A fair dollop of bonds won't hurt in this situation.
If you can be more flexible and spend a fixed percentage of your nest egg each year, then you can indeed keep you entire retirement stash in stocks and spend 5% annually. Just remember that your stipend will likely fluctuate wildly over the decades of your retirement. Keep a few cans of Alpo in the cupboard if you decide to go this route.
I ask that you kindly knock off the nonsense and permit those community members who wish to engage in reasoned discussions of what the historical data says re SWRs do so in peace.
DCMs should not be permitted to disrupt those threads with all sorts of nonsense.
Wow! Waspish, but you don't have to be nice if you are right.And it's "data say".
arrete
I find it hard to say nice things to someone who has just said nasty things about me. I'm human.Wow! Waspish, but you don't have to be nice if you are right.