REWahoo
Give me a museum and I'll fill it. (Picasso) Give
No, I meant striving to get anything over an 80% success rate was a wasted effort - according to Bernstein.LOL...I think you meant under 80%?
No, I meant striving to get anything over an 80% success rate was a wasted effort - according to Bernstein.LOL...I think you meant under 80%?
No, I meant striving to get anything over an 80% success rate was a wasted effort - according to Bernstein.
Bernstein suggests anything over 80% is merely rearranging deck chairs on the Titanic...
It's a good question.
My bet - 85% of those on this forum like to see a range of 95-100 percent out of the tools for a 25 year period.).
No, I meant striving to get anything over an 80% success rate was a wasted effort - according to Bernstein.
Bernstein makes an important point. The 80% failure won't happen because half the people won't live long enough. The failure rate only applies to the small % of population that actually survives the 30 year period.When your starting asset valuations for both stocks and bonds are in the top decile of periods included in FIRECalc's data set, it's not unreasonable to think that bottom decile returns are in store for us. If that's true one might expect that planning for a 20% failure rate as per FIRECalc might actually mean something closer to an 80% failure rate going forward.
You don't need to assume war, famine, pestilence and asteroids to plan for much lower investment returns than we've seen historically. And low investment returns are survivable, if you have enough starting capital.
For a 30 year retirement, 3-4% WR corresponds to 95-100% probabilities - not 80%.Mind you, this is not a call for wild abandon. The above table constrains the retiree desiring a theoretical 97% success rate (of portfolio survival) from spending more than 3% per year of the initial real amount of his nest egg. Taking the accident propensity of the species into account would allow him to spend about 4%. But if you believe that we’re about to encounter a bad returns sequence or simply wish to leave a few baubles to your heirs, you’re right back to 3% again.
So live a little, and enjoy your money, for tomorrow we may be consumed by the ghosts of Hitler, Lenin, and Attila the Hun. And at withdrawals of 3% to 4% of your nest egg, don’t spend it all in one place.
Yikes! You caught me red fingered...Quoting Bernstein out of context again,...
On the other hand, you could always reduce your expenses and/or increase your portfolio enough so that you can live on a 2.5 - 3% withdrawal rate or less, and don't have to worry about running multiple retirement simulators to squeeze every last dollar out of your portfolio.
But then, we'd have a lot less to talk about here
How critical is it to achieve 100% success before retirement based on FireCalc and similar tools? Meaning should one not even consider jumping into retirement unless the tools give you a 100% success rate? Or have folks here done it at say 85-90% as good enough?
I have enough, and crave no fancy toys. And if I spend more, my stash will likely shrink with time. I hate to see that, being so used to see my stash grow, whether a lot or a little.
Money is cool, even if it is just a number on the laptop screen.
Bernstein makes an important point. The 80% failure won't happen because half the people won't live long enough. The failure rate only applies to the small % of population that actually survives the 30 year period.